ALAMEDA, Calif., May 3 /PRNewswire/ -- UTStarcom, Inc. (Nasdaq: UTSI)
signed a $12 million contract to install its city-wide wireless mobile PAS
telephone access equipment in the Guangdong Province city of Jiangmen. This is
the first contract that UTStarcom has signed with Jiangmen Telecom, and will
provide PAS capacity to the city of Jiangmen and two suburbs. To date
UTStarcom has installed its PAS in three other cities in Guangdong Province.
Guangdong Province, one of China's most economically developed areas, is
located on the southern coast of China and has a population of more than
70 million. The city of Jiangmen is located in the Pearl River Delta and has a
population of 3.8 million, with a teledensity rate of approximately 30%.
UTStarcom's PAS provides city-wide wireless mobile phone service for a
community of up to several hundred thousand subscribers at traffic densities
of upwards of 2,000 subscribers per square kilometer. Compared to traditional
cellular systems, PAS mobility functions are completely integrated into the
access network architecture and thus require no central office switch
modification or incremental mobile switching hardware. By integrating PAS into
the existing access network, service providers can take advantage of unused
central office switching capacity to carry incremental wireless traffic loads.
This allows service providers to offer existing switch-based services, such as
caller ID, call forwarding and voice mail to its wireless subscribers.
Subscribers enjoy the mobility of small handsets weighing less than three
ounces with over 800 hours of standby battery capacity and up to 6.5 hours of
talk time. PAS supports wireless data transmission of 32Kbps, upgradeable to
64Kbps, enabling wireless internet access at speeds faster than those possible
with many wireline dial-up modems and other wireless technologies.
About UTStarcom, Inc.
UTStarcom designs, sells, manufactures and installs an integrated suite of
wireless and wireline network access systems that allows communications
service providers to offer efficient and scalable voice, data and internet
access services. Current product offerings include: Airstar network access
system, which allows service providers to offer voice and data services over
fixed wireless (WLL) and city-wide wireless (PAS) mobile networks; AN-2000, a
broadband-ready access system for wireline networks; OMUX, an optical
multiplexing product which provides optical transmission; and WACOS, an
IP-based switch designed to deliver multiple voice and data services using a
highly distributed architecture. The Netman network management system, which
is integrated with the network access products, provides for centralized
management of the Airstar, AN-2000 and OMUX products.
The Company's customers are public telecommunications service providers
that operate wireless and wireline networks in rapidly growing communications
markets. To date the market focus has been primarily on China, where growth in
the communications equipment markets is being driven by government commitment
to infrastructure development, strong economic growth and pent-up consumer
demand.
UTStarcom was founded in 1991 and is headquartered in Alameda, California.
The Company manufactures the majority of its products at two ISO9002 certified
facilities located in China, and maintains sales and customer support sites
throughout China. The Company's international sales group handles sales
outside China and is located in the USA. UTStarcom's research and development
facilities are located in the USA and China.
For more information about UTStarcom, visit the Company's website at
http://www.utstar.com.
NOTE: Airstar, PAS, AN-2000, WACOS, Netman, and the UTStarcom name and
logo are trademarks of UTStarcom, Inc. and its subsidiaries.
Forward-Looking Statements
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995: Any statements set forth in the news release that are not historical
in nature, such as "This is the first contract that UTStarcom has signed with
Jiangmen Telecom, and will provide PAS capacity to the city of Jiangmen and
two suburbs," are forward-looking statements. Forward-looking statements are
inherently subject to risks and uncertainties, some of which cannot be
predicted or quantified. Potential risks and uncertainties include, but are
not limited to, such factors as the risks associated with doing business in
foreign countries, difficulties regarding the making of estimates and
projections, potential cancellations, reductions or delays in system
deployments, the hiring of qualified technical personnel in a competitive
labor market, rapidly changing technology and product obsolescence, the
ability to realize cost savings or productivity gains, potential cost
increases, the strength and competitive pricing environment of the
marketplace, demand for and acceptance of the Company's products, difficulties
of foreseeing future demand, potential non-realization of backlog, business
and economic conditions such as the current industry conditions, customer
order preferences, Company strategies, environmental matters, litigation and
inventory obsolescence. In addition to these and any other factors mentioned
elsewhere in this news release, readers should refer as well to the factors
identified in the Company's Prospectus filed by the Company with the
Securities and Exchange Commission.
SOURCE UTStarcom, Inc.
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Related links:
http://www.utstar.com
CONTACT:
Michael J. Sophie, Vice President of Finance,
CFO, 510-749-1510, or Valerie J. Paul, Director, Investor
Relations, 510-749-1209, both of UTStarcom, Inc.
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