Choose your language

ARRIS and UTStarcom, Inc. Announce Agreements to Jointly Develop and Market Fixed Mobile Convergence (FMC) Solutions

SUWANEE, Ga., April 7 /PRNewswire-FirstCall/ -- ARRIS (Nasdaq: ARRS) today
announced that it has entered into a joint development agreement, a licensing
agreement and a supply agreement with UTStarcom, Inc. (Nasdaq: UTSI) that will
together enable the fourth leg of the quadruple play for cable Multiple System
Operators (MSOs) worldwide. The joint solution will allow end customers with a
Wi-Fi-enabled dual-mode handset to seamlessly roam between their cellular and
Wi-Fi connections (a service commonly referred to as Fixed Mobile Convergence
(FMC)). ARRIS' FMC solution enables MSOs to add mobility features to their
service portfolio and leverage their existing VoIP infrastructure using
industry standard protocols. As IP Multimedia Subsystem (IMS) and
PacketCable(TM) 2.0 specifications are finalized, the solution's software will
evolve to meet those requirements and new applications. UTStarcom's
Continuity(TM) FMC solution is designed to increase network efficiency and
coverage through either wireline or wireless networks. It can also enable end
users to access a richer set of services and features than were available in
the past.

ARRIS and UTStarcom, Inc. Announce Agreements to Jointly Develop and Market Fixed Mobile Convergence (FMC) Solutions
ARRIS and UTStarcom, Inc. Announce Agreements to Jointly Develop and Market Fixed Mobile Convergence (FMC) Solutions

ARRIS to Develop and Market Quadruple Play-Enabling Technology to Cable MSOs Worldwide

Under the terms of the licensing agreement, ARRIS will license FMC
software from UTStarcom. The licensing agreement has an initial term of three
years, after which ARRIS will have the right to exercise an option to retain
rights in the software. Under the conditions of the development agreement,
both parties will jointly create improvements and new and enhanced features
for emerging FMC solutions according to the set milestones. The supply
agreement calls for UTStarcom to provide ARRIS with the hardware and software
for sale to the global cable MSO community. ARRIS will have exclusive
marketing rights to the global MSO community per the terms of the supply
agreement and UTStarcom will retain exclusive marketing rights to the telco
community. The ARRIS FMC solution is planned for shipping in the second half
of 2006 with early customer testing already underway. UTStarcom's Continuity
FMC solution is available today and is currently in telecom carrier trials.

The ARRIS FMC solution consists of an ARRIS Mobility Application Server
(MAS) located in a cable headend that controls the communication between a
cable operator's telephony operations and the cellular operator's network.
The communication between networks allows for seamless mobility between
cellular and IP access networks via standardized cellular signaling
mechanisms. In the home, the customer's dual-mode handset voice traffic and
signaling is carried via their WiFi connection (such as the ARRIS
Touchstone(R) TM552 wireless telephony modem (E-MTA)) through the High Speed
Internet access provided by the MSO's CMTS (such as the ARRIS Cadant(R) C4(TM)

'We are very excited to be able to offer cable operators this elegant
fixed mobile convergence solution,' said ARRIS New Business Ventures
Bryant Isaacs
. 'This new capability allows ARRIS to further equip the cable
industry with another tool in providing end users with the ultimate converged
services portfolio.'

UTStarcom's Continuity solution includes an FMC Feature Server (FMC-FS)
based on the company's mSwitch(R) IP softswitch platform and a dual-mode Wi-
Fi/GSM handset. With Continuity, fixed and mobile service providers can
deliver a unified service over both wireline and wireless networks. End users
can interconnect to the fixed-line or cellular network transparently and roam
across them seamlessly regardless of their location, communication device, or
network access method. The Continuity architecture is designed to enable all
service providers to continue to add mobility feature servers for CDMA, WiMAX,
and other services well into the future, such as streaming media.

'These agreements will allow UTStarcom to expand its innovative FMC
solutions to a broader set of service providers,' said Farshid Mohammadi,
UTStarcom's General Manager, Switching. 'UTStarcom's IMS-based Mobility
Application Server utilizes MSOs and service providers' existing assets to
provide fixed mobile convergence. Our Mobile Applications Server enables MSOs
to offer converged solutions to their customers with the goal of delivering
multimedia services through the customer's device of choice.'


ARRIS provides broadband local access networks with innovative video,
high-speed data and telephony systems for the delivery of voice, video and
data to the home and business. ARRIS complete solutions enhance the
reliability and value of converged services from the network to the
subscriber. Headquartered in Suwanee, Georgia, USA, ARRIS has design,
engineering, distribution, service and sales office locations throughout the
world. Information about ARRIS products and services can be found at

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, China, Korea
and India. UTStarcom is a FORTUNE 1000 company.

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


This release includes forward-looking statements by and about UTStarcom,
including the foregoing statements regarding the anticipated joint development
and improvement of the FMC solution by UTStarcom and ARRIS, the anticipated
impact of the FMC solution on MSOs, the expectation regarding the evolution of
the FMC solution, the expected manner of implementation of the joint venture
between UTStarcom and ARRIS, the anticipated shipment schedule and consumer
testing of the FMC solution, the expected components of the FMC solution, the
anticipated ability of the FMC solution to provide seamless mobility between
cellular and IP networks and its impact on home use of dual-mode handsets, and
the anticipated ability of the FMC solution to allow service providers to
provide end-users with a converged service portfolio and multimedia services
through the end-user's device of choice. These statements are forward-looking
in nature and subject to risks and uncertainties that may cause actual results
to differ materially. These risk factors include rapidly changing technology,
the changing nature of global telecommunications markets, the termination of
significant contracts and/or strategic relationships, the direction and
results of future research and development efforts, evolving product and
applications standards, reduction or delays in system deployments, product
transitions, potential non-realization of backlog, changes in demand for and
acceptance of UTStarcom's products, general adverse economic conditions, and
trends and uncertainties such as changes in government regulation and
licensing requirements. UTStarcom also refers readers to the risk factors
identified in its latest 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.