UTStarcom Secures Deal With Best Tone Hunan Branch for New Video Advertising NetworkTuesday, October 14th, 2008
RollingStream Platform Serves as First Video Information Distribution Network in China’s Hunan Province
ALAMEDA, Calif. — UTStarcom, Inc. (Nasdaq: UTSI) today announced it has signed an agreement with Best Tone Information Service Corporation Ltd., a wholly-owned subsidiary of China Telecom Corporation Ltd. (NYSE: CHA; HKG: 0728), with the intent to deploy a video information distribution network in the Hunan province of China. This is the second large-scale interactive advertising system that UTStarcom’s end-to-end RollingStream® Internet Protocol TV (IPTV) platform will power in China, both of which are expected to change the way subscribers view advertisements. UTStarcom previously announced the launch of the first interactive advertising network with Guangxi Telecom Company Limited, also a wholly-owned subsidiary of China Telecom Corporation Limited, in July 2008.
Best Tone is working with UTStarcom to build and operate a Chinese-specific, building-based video information network and distribution system, with 3,500 iPAD1000 terminals scheduled to go live in office buildings, government facilities, supermarkets, hotels, hospitals and schools in the Hunan Province this year. The iPAD1000 technology integrates UTStarcom’s RollingStream IPTV set-top boxes, an ADSL modem, Wi-Fi adapter, IPTV network connection and video monitor into a single terminal station. The network, intended to generate new revenue opportunities by streaming commercial advertisements throughout Hunan Province, is expected to support a total of 10,000 terminals in the region upon completion of the project.
“UTStarcom’s RollingStream IPTV solution provides the foundation that Best Tone needs to most effectively leverage our expansive broadband network to create valuable new marketing channels for our customers’ products and services,” said Zhenbo Zhang, vice general manager of Hunan Branch, China Telecom Corporation Ltd. “As a long-time partner of China Telecom’s Hunan Branch, UTStarcom has consistently proven that it understands and is in line with our long-term goals to transform into a true information and communications service provider.”
Best Tone’s one-stop information network provides users with access to services such as Best Tone’s free 114 Internet search portal for the Web, blogs, forums and news; 114 Directory Assistance; yellow pages; integrated media services and interactive advertising . It strives to provide business information to government and corporate users and information about daily life to individual consumers.
“UTStarcom’s long-term IPTV presence in China provides unique expertise in developing and delivering interactive services,” said Robert Wu, CEO of UTStarcom China. “Increasingly, companies are seeking out new ways to reach consumers beyond traditional advertising methods. UTStarcom’s RollingStream solution is assisting service providers in addressing this need and further monetizing their existing networks.”