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ALAMEDA, Calif., Sep 27, 2004 /PRNewswire-FirstCall via COMTEX/ -- UTStarcom, Inc. (Nasdaq: UTSI), a global leader in IP access networking and services, today announced that Personal Access System (PAS) users in China can now send Short Message Service (SMS) messages to each other, regardless of whether they signed up for PAS service with China Telecom or China Netcom.
(Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20031229/UTSLOGO )
Under the terms of the interoperability agreement signed by China's two fixed-line operators, China Telecom and China Netcom, PAS subscribers can now send SMS messages to PAS users on either operator's networks. Previously, users could only send messages to other subscribers on the same service provider's system. As the leading PAS equipment vendor worldwide, UTStarcom offered its expertise to help define the technology standards needed to achieve connectivity for PAS SMS between the two operators' networks.
SMS is an integral value-added service for the China market as approximately 33 percent of the total global short messaging volume comes from China. According to the China Daily, more than 240 billion SMS messages were sent in China in 2003, representing approximately $2.4 billion in revenue for operators and an increase of 170 percent in messages sent from 2002.
"UTStarcom was very pleased to be involved in the initiative with China Netcom and China Telecom to make SMS interoperable between the two operator's PAS networks," said Simon Le, senior vice president of sales for UTStarcom China. "Besides offering reliable voice service at an affordable price, PAS also provides subscribers with a variety of value-added applications, such as SMS, C-MODE-based web browsing, and 64Kbps wireless Internet access, that make it a compelling and attractive alternative to more expensive cellular service offerings. Achieving SMS interoperability between China Telecom and China Netcom's networks is crucial to the success of PAS in the future as mobile operators continue to cut service costs to compete for subscribers."
Last month, China Telecom and China Mobile, one of China's two cellular operators, signed a similar interoperability agreement that could potentially speed up network connectivity negotiations between the remaining fixed-line and mobile operators.
China PAS Subscriber Update
Approximately 33.2 million people currently subscribe for PAS service in China on UTStarcom-powered networks. Despite a slowdown on spending on new network construction as operators expand and optimize existing systems, PAS subscriber growth in China continues to be strong with expectations that the service will reach the 100-million-subscriber milestone at the end of 2005. Eight cities in China have recently surpassed the one-million-subscriber mark, including Beijing, China's capital and a city that rolled out PAS service a little more than a year ago. Beijing's approximately one million PAS subscribers currently account for approximately 10-15 percent of the city's mobile market share.
Behind CDMA and GSM, Personal Handyphone System (PHS) -- the mobile local loop technology standard for PAS -- is the third largest wireless standard in the world.
About UTStarcom, Inc.
UTStarcom is a global leader in IP access networking solutions and international service and support. The company sells its wireline, wireless, optical and switching solutions to operators in both fast growth and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient end-to-end IP networks. Founded in 1991 and headquartered in Alameda, California, the company has research and design operations in New Jersey, China, and India. UTStarcom is a FORTUNE 1000 company.
For more information about UTStarcom, visit the company's Web site at www.utstar.com.
Forward-Looking Statements
The foregoing statements regarding, without limitation, the revenue generating ability of SMS, the volume of SMS messages expected to be sent in China and PAS subscriber growth in China, are forward-looking in nature and are subject to risks and uncertainties that may cause actual results to differ materially. These factors include rapidly changing technology, the rapidly changing nature of China's telecommunications markets, possible downturns in the telecommunications market of China, the termination of partnerships or alliances and other uncertainties, such as changes in government regulation and licensing requirements and economic stability in China. UTStarcom also refers readers to the risk factors identified in its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the Securities and Exchange Commission.
SOURCE UTStarcom, Inc.
Chesha Kamieniecki, Senior Manager of Investor Relations of UTStarcom, Inc., +1-510-749-1560; or media, Stephanie Gallagher of Engage PR, +1-510-748-8200, ext. 213, or stephanie@engagepr.com, for UTStarcom, Inc. /Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20031229/UTSLOGO AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com
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