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Exporting from the Exporting from the Exporter PerspectiveExporter Perspective

Long Island ImportExport Association

May 15th, 2008

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OverviewOverview

• Who is UTStarcom?

• Customer Base

• Sales vs. Operations

• Corporate Responsibility

• Examples

• When is it worth it?

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Who is UTStarcom?Who is UTStarcom?

UTStarcom is a global leader in the manufacture, integration and support of IP-based, end-to-end networking and telecommunications solutions.

UTStarcom Personal Communications Division

- Importer and distributor of Wireless Products and Accessories

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Our Domestic CustomersOur Domestic Customers

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While Importing is the Focus..While Importing is the Focus..

Sales Diversification is key to our businessSales Diversification is key to our business

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Export Customer BaseExport Customer Base

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SALES vs. OPERATIONS

Now the Battle BeginsNow the Battle Begins

What is our Responsibility?What is our Responsibility?

• Know our Customer (Denied Party?)• Where are they from? Where are the products going?• Address / Headquarters• How Long in Business?• Website - If they are a carrier, who else supplies products for them?• How are they planning on promoting our products?• Sales Team is vouching for them, but I always ask questions!

• Keep educating the sales teams

Greater Focus on Each RegionGreater Focus on Each Region

• What is going on in each Country we ship to?•War•Political Unrest •Elections•Strikes / Labor Strife•Customs Delays•Cargo Back Logs•Currency Fluctuations / Changes•Weather / Natural Disasters

•This will help structure your deal (Incoterms)•Are you going to get paid?

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Movilnet / VenezuelaMovilnet / Venezuela

• Life with Hugo Chavez has not been easy• But Movilnet is a strong customer• 2 years ago…no cargo landings for 3 days in Caracas (American Aircraft Only)• Changed Venezuela’s Currency• Free Time in Caracas from 6 to 10 days• Combat Theft / Pilferage• Forwarder / Airline / Broker Approved document

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Bolivia / The New ChallengeBolivia / The New Challenge

• Land locked country (Ocean Cargo a problem)

• Un-chartered Territory for UT

• Received plenty of “RED-TAPE” info already

• Government Control of National Airline

• No lift Capacity until June 1st, 2008

• Time to check out the scales of business sense

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Scales of Business SenseScales of Business Sense

• Total Employee Hours

• Payments

• Risk Factors

• Relationship Potential

• This could be the big one

• How many headaches?

• Fits overall budget

• Prepaid? / Letter Credit

• Incoterms / Region Fit

• Quarterly Buyer

• 20% Profit Margin

• Headaches are Manageable

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Conclusion:Conclusion:• Exporting is a key component of the UT Model

• Do your research because it is your responsibility

• Respect your sales team, they need you as much as you need them (I’ll never let them know)

• Figure out what the Cost vs. Benefit is doing business in different regions

• Keep Educating your teams and stay on top of current events.

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Contact Info:

PJ Moffett

International Logistics Manager / Customs Compliance

555 Wireless Boulevard Hauppauge NY 11788

Tel# 631-233-3396

pj@utstar.com