China Telecom to Launch IPTV Service Powered by UTStarcom's mVision End-to-End IPTV System

China Telecom to Launch IPTV Service Powered by UTStarcom's mVision End-to-End IPTV System

Initial Deployment of 5,000 Subscribers in Shanghai

ALAMEDA, Calif., Nov. 15 /PRNewswire/ -- UTStarcom, Inc., a global leader in IP-based, end-to-end networking solutions and services, today announced that China Telecom, the largest fixed-line telecom operator in China, has chosen UTStarcom's mVision end-to-end IPTV system to support its new IPTV service in China to be launched by the end of the year. The first official service launch of up to 5,000 subscribers is scheduled to be in Shanghai.

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"While we don't expect revenue associated with this agreement to be meaningful in the near term, we do believe this represents a significant opportunity over the next several years," said Ying Wu, chief executive officer and president of UTStarcom China. "We believe that IPTV technology will revolutionize the way people watch TV by empowering users with the ability to choose the programs they want to watch when they want to watch them. According to a recent report from ABI Research, IPTV subscriber growth is expected to exceed 110 million people by 2010, with the Asia Pacific region accounting for more than 50 percent of the subscribers worldwide."

"We feel confident in our long-standing relationship as an equipment provider to China Telecom, which dates back more than 10 years when we started to deploy our PAS networks," Wu added. "We believe our mVision IPTV solution is a mature, field-proven platform, having been deployed by Softbank Broadband in Japan for the launch of their BBTV commercial IPTV service in July. We believe the success Softbank Broadband has had to date with mVision in Japan will translate well in China, a country with more than 1.3 billion people and a television penetration rate of more than 90 percent. The company currently has more than 40 trials underway throughout China."

The launch of the commercial service in Shanghai is the culmination of an integrated commercial trial of IPTV by China Telecom in five provinces throughout China. Partnering with Shanghai Media Group (SMG), a leading multimedia television content provider, China Telecom Shanghai plans initially to offer subscribers a service package of live broadcast television and videos-on-demand. Additionally, the service is also designed to offer subscribers "time-shift" capabilities -- the ability to pause and rewind live television, as well as an expansive amount of storage to record any program and watch on each subscriber's own schedule.

About UTStarcom's mVision

UTStarcom's mVision is an end-to-end solution designed for telecommunications operators and broadband service providers to deliver broadcast quality TV and on-demand entertainment programming over IP networks. mVison offers service providers the scalability, reliability, and bandwidth efficiency to support new services such as broadcast TV, Network PVR (n-PVR), Video on Demand (VoD), and Near Video on Demand (NVoD) over existing network infrastructures. This may result in new revenues, new services, and improved customer satisfaction and retention.

For more information about UTStarcom's mVision solution, please visit: http://www.utstar.com/Solutions/Broadband/IPTV_mVision/

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 www.utstar.com.

Forward-Looking Statements

This release includes forward-looking statements, including the foregoing statements regarding the anticipated initial number of IPTV subscribers as well as the timing and location of the launch of IPTV services, the anticipated significance of revenues from the agreement with China Netcom and associated opportunities for the Company, the anticipated impact of IPTV technology on users' TV watching patterns, the expectation that the Company's mVision IPTV system may find comparable success in China as in Japan, the anticipated service package and features of IPTV technology based services to be offered by China Telecom, the anticipated growth in the number of IPTV subscribers and the proportion of worldwide IPTV subscribers that the Asia-Pacific region will account for, and the expectation that mVision may result in new revenues, services and improved customer satisfaction and retention for service providers. 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 the ability of strategic partners of the Company to migrate trial subscribers of IPTV services to full commercial status, the ability of strategic partners of the Company to retain and increase their base of commercial subscribers of IPTV services, rapidly changing technology, the changing nature of global telecommunications markets, both in China and globally, the termination of significant contracts and other agreements with strategic partners of the Company, the status of relationships with key business partners of the Company, the direction and results of future research and development efforts, evolving product and applications standards, reduction or delays in system deployments, product transitions, changes in demand for and acceptance of the Company's products, general adverse economic conditions, and trends and uncertainties such as changes in government regulation and licensing requirements, both in China and globally. The Company 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.

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Source: UTStarcom, Inc.

CONTACT: Chesha Kamieniecki, Director of Investor Relations,
+1-510-749-1560, or media, Andy Tennille, Public Relations Associate,
+1-510-749-1212, both of UTStarcom, Inc.

Web site: http://www.utstar.com/

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