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UTStarcom Signs Contract With China Telecom for 300,000 QBOX Terminals to Support Fixed-Line PAS Convergence Services

ALAMEDA, Calif., June 29 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), a global leader in IP-based, end-to-end networking solutions
and services, today announced it has signed a contract with China Telecom
Group to supply 300,000 QBOX terminals. China Telecom will sell the QBOX for
use with its Homebox fixed-line/PAS convergence service, which is available in
24 cities in China.

UTStarcom Signs Contract With China Telecom for 300,000 QBOX Terminals to Support Fixed-Line PAS Convergence Services
UTStarcom Signs Contract With China Telecom for 300,000 QBOX Terminals to Support Fixed-Line PAS Convergence Services

QBOX Leverages IP and Fixed-Mobile Convergence to Enable New Services for PAS Subscribers in 24 Cities

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The Homebox service is designed to allow iPAS(TM) users to seamlessly roam
between the public PAS network and their private iPAS connections at home,
which are provided by the QBOX terminal. The QBOX thus enables fixed-mobile
convergence (FMC) by allowing subscribers to use their iPAS devices as digital
cordless phones. In addition, existing fixed-line users can use the UTStarcom
terminal to enjoy the rich bundle of value-added services that PAS provides.
The QBOX can also be configured to integrate ADSL CPE and WiFi access point
functions, enabling China Telecom to offer wireless data access in the home
computing environment.

''This is another demonstration of UTStarcom's continuing innovation of
our iPAS solution, leveraging our expertise in IP and fixed-mobile convergence
to enable new services. We are already a major player in IP Telephony; our
mSwitch(R) NGN solution, which supports iPAS, transports more than 200 billion
minutes of IP Telephony traffic each year,' said
Simon Le, senior vice
president of UTStarcom China. 'China now has over 360 million fixed-line
subscribers and approximately 90 million PAS subscribers. We believe the
synergy of PAS and fixed-line service represents an important trend in China's
telecommunication service, one with very good prospects in the future.'

China Telecom is the largest PAS and fixed-line operator in China, with
approximately 60 million PAS subscribers. The operator first launched the
Homebox service in six cities in the second half of 2005. To date, about
300,000 users have signed up, and the service will ultimately extend to 24

About UTStarcom's QBOX

QBOX is a multi-service convergence terminal developed by UTStarcom. It
integrates a traditional telephone, PHS home base station, ADSL modem, and
WiFi access point to deliver integrated services to end users from a single

About UTStarcom, Inc.

UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The company sells its broadband,
wireless, and handset solutions to operators in both emerging 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 the United States, Canada,
China, Korea and India. UTStarcom is a FORTUNE 1000 company.

For more information about UTStarcom, visit the company's Web site at

Forward Looking Statements

The foregoing statements regarding, without limitation, the anticipated
results of the relationship with China Telecom, anticipated functionality of
the QBOX, anticipated trends in China's telecommunications service and
anticipated extension of the Homebox service in cities 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 developing telecommunications
markets, possible delays in system deployments or product introductions,
possible downturns in the telecommunications markets of developing countries
and worldwide, the termination of new contracts, partnerships or alliances,
and other uncertainties, such as changes in government regulation and
licensing requirements and economic and political stability, in developing
markets and generally. The Company 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

SOURCE UTStarcom, Inc.