UTStarcom Signs $9 Million Expansion Deal With SOFTBANK Corp. For NetRing Optical Products
ALAMEDA, Calif., Nov. 30 /PRNewswire-FirstCall/ — UTStarcom, Inc. , a global leader in IP access networking and services, today announced an expansion contract valued at approximately $9 million with the SOFTBANK Corp. for purchase of UTStarcom’s NetRing 10000 STM-64 multiservice optical transport solution to build the operator’s new nationwide fixed-line network.
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“With UTStarcom’s technology, we can reduce our service costs because NetRing products make efficient use of network bandwidth and improve Ethernet/IP transport efficiency across SDH networks,” said Junichi Miyakawa, director, vice president, and executive officer of Japan Telecom. “Although we initially plan to run voice and data traffic over our new network, NetRing provides us with the flexibility to offer additional subscriber-demanded, triple play services in the future that we believe will increase average revenue per user (ARPU) and speed our return on investment (ROI).”
SOFTBANK is deploying UTStarcom’s technology in the construction of a new fixed-line network with Japan Telecom to deliver high-speed broadband, voice and video services to its subscribers. The network ultimately will serve all of Japan, from Hokkaido in the north to Kyushu in the south.
“Our successful relationship with SOFTBANK Corp. has increasingly become a showcase for the diversity of UTStarcom’s total product portfolio,” said Michio Nakanishi, president and chief executive officer of UTStarcom Japan K.K. “Besides our NetRing multiservice optical transport platform, UTStarcom also provides its IP-DSLAM and GEPON transport solutions to SOFTBANK to enable the operator’s Yahoo! BB broadband services. As Japan is the global epicenter for the development of advanced telecom services, UTStarcom continues to be a key equipment vendor that enables the deployment of these revenue-generating services.”
The NetRing contracts with SOFTBANK Corp. are another example of UTStarcom’s evolution from a vendor focused primarily on building a successful PAS business in China to a global leader in next-generation telecommunications solutions. UTStarcom believes that diversifying its solutions and expanding its relationships with top-tier carriers around the world will benefit its long-term growth and its ability to deliver value to its shareholders in 2005 and beyond.
Carrier-Class Edge Aggregation, Grooming, and Transport
UTStarcom’s NetRing product line provides aggregation, grooming, cross-connect, and transport functionality to deliver high-density, highly efficient STM-1 to STM-64, PDH (E1/DS1, E3/DS3), Fast Ethernet, Gigabit Ethernet, and ATM services in SDH-based carrier networks. All systems support full redundancy, multiple protection options, and in-service upgrades.
The NetRing product family combines Add-Drop Multiplexing (ADM), Digital Cross-Connect System (DCS), Ethernet switching, ATM multiplexing and RPR functionality into an integrated, “pay-as-you-grow” multi-service system.
The NetRing optical solutions from UTStarcom are among the first to support virtual concatenation, based on relevant ITU standards. With this functionality, UTStarcom believes that carriers can have provisioning granularity in any STS/VC increment, improving Ethernet/IP transport efficiency across SDH networks. UTStarcom’s NetRing products support advanced EoS protocols, such as Generic Framing Procedure (GFP), which provides standards-based data encapsulation for efficient mapping of a wide variety of data protocols, including Ethernet, ESCON, FICON, Fibre Channel, and digital video into SDH. LCAS (Link Capacity Adjustment Scheme) function is provided to reduce carrier’s operational cost, increase service velocity, and improve network reliability. Built-in Ethernet management functionality enables carriers to apply traffic shaping and limiting policies on a per-port or per-traffic-flow basis for point-to-point Ethernet, Ethernet aggregation, Layer 2 switching, and Ethernet VLAN applications. Statistical multiplexing capability allows native Ethernet/data switching and oversubscription.
The NetRing product line consists of NetRing 600, NetRing 2500, NetRing 2500S and NetRing 10000 products. NetRing 600, 2500, and 10000 products comply with ETSI telecom standards for SDH deployment.
About Japan Telecom
Japan Telecom started operations in 1986 as a carrier providing long-distance telecommunications services throughout Japan. Through approximately 12,000 km of fiber-optic networks across the country, Japan Telecom provides a wide range of voice and data communications services tailored to suit all needs of corporate, small and medium size enterprises, along with individual customers. Japan Telecom is committed to promoting and realizing the revolution of lifestyle, work style and business model with its cutting-edge broadband technology.
For more information about Japan Telecom, visit the company’s Web site at http://www.japan-telecom.co.jp/english/
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 http://www.utstar.com/.
The foregoing statements regarding, without limitation, the deployment of UTStarcom’s products in Japan, the anticipated scope of the fixed-line network with Japan Telecom, the ability of carriers to reduce service costs through the use of UTStarcom’s technology, the efficiency of the NetRing products, the ability of the NetRing products to increase average revenue per user and speed up the carrier’s return on investment and UTStarcom’s position as a key equipment vendor that enables the deployment of revenue generating services 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, possible downturns in the telecommunications markets in Japan and worldwide, the termination of contracts, and other uncertainties, such as changes in governmental regulation and licensing requirements and economic and political stability worldwide. 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.
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CONTACT: Chesha Kamieniecki, Senior Manager of Investor Relations ofUTStarcom, Inc., +1-510-749-1560; or Stephanie Gallagher of Engage PR,+1-510-748-8200, ext. 213, or firstname.lastname@example.org, for UTStarcom, Inc.
Web site: http://www.utstar.com/