As part of the efforts to restructure Motorola's troubled mobile phone business, Hangzhou Motorola, a 49-51 joint venture between Motorola and Hangzhou Eastern Communications, will terminate its mobile phone production operations by the end of the first quarter of 2009, Xinhua News reported on March 4, adding that the mobile phone production in Hangzhou will be consolidated into the mobile phone business unit of Tianjin Motorola by then.

Instead, Hangzhou Motorola will focus on the production of broadband and wireless network equipment, including TV STBs (Set Top Boxes). In February 2008, the JV purchased two Hangzhou companies with specialties in TV STB operations. Additionally, the spokesperson of company claimed that the entire staff currently based in Hangzhou will be directly transferred to the production lines of TV STBs and the company has no layoff plan so far, the China Daily reported on March 3.