UTStarcom Expands IPTV Leadership in China With New Contract in Shanxi Province With China Telecom

Wednesday, January 24th, 2007

Over 80 Percent of All IPTV Subscribers in China on UTStarcom’s RollingStream™ End-to-End System

ALAMEDA, Calif. — UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions and services, today announced a contract with China Telecom (CTC) to deploy its RollingStream™ end-to-end IPTV solution for a new commercial IPTV network in China’s Shanxi Province.

The initial deployment, supporting 30,000 subscribers, is planned to include 14 service points covering major metropolitan areas of Xian, the capital city of Shanxi Province. The service is expected to offer up to 80 channels of live, broadcast television; 24-hour time-shifting capability; approximately 10,000 hours of video-on-demand (VOD) content; and valued-added services including karaoke and gaming.

“UTStarcom continues to build on its leadership in the IPTV market in China and this contract is further validation of the strength, reliability and security of our RollingStream end-to-end IPTV system,” said Ying Wu, president and chief executive officer of UTStarcom China. “Many of our initial IPTV deployments in China are currently undergoing network expansions as demand for the service has grown. Additionally, we are seeing new deployments emerge as fixed-line operators are realizing the potential for deploying IPTV services to combat subscriber churn and increase average revenue per user.”

At ITU Telecom World 2006 in Hong Kong last month, UTStarcom’s RollingStream IPTV solution was named the best IPTV solution worldwide by Communications Weekly, a leading publication under the guidance of the Ministry of Information Industry (MII) in China. UTStarcom was also awarded the Development Contribution Award for its efforts for IPTV standardization in China.