BEIJING (AFX) - UTStarcom Inc (NASDAQ UTSI) said it has signed two deals with China Telecom and China Netcom worth a combined 160 mln usd to expand their existing IP-based personal access system (PAS) networks.
The California-based networking solutions provider signed a contract valued at 120 mln usd with China Telecom to provide PAS network expansion services in the eastern provinces of Jiangsu and Zhejiang and the southwestern province of Sichuan.
UTStarcom also won a 40 mln usd contract from China Netcom, the other major fixed-line operator in the country, to expand the company's exiting PAS networks in the central provinces of Shandong and Henan, as well as in Beijing.
UTStarcom holds more than 50 pct of the market for PAS handsets in China, the company said in an earlier statement.
PAS, also called Xiaolingtong, or Little Smart, is a low-cost service with limited mobility provided by fixed-line operators such as China Telecom and China Netcom.
There are currently over 65 mln PAS subscribers in China and analysts expect the figure to reach 90.41 mln by 2007. They expect 6.4 bln yuan to be invested in PAS infrastructure over the next three years.
China Telecom and China Netcom are the parents of overseas listed China Telecom Corp Ltd (HK 0728; ADR CHA) and China Netcom Group Corp (HK 0906).
(1 usd = 8.3 yuan)
tom.wang@xinhuafinance.com
tom/amj/dk
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
The California-based networking solutions provider signed a contract valued at 120 mln usd with China Telecom to provide PAS network expansion services in the eastern provinces of Jiangsu and Zhejiang and the southwestern province of Sichuan.
UTStarcom also won a 40 mln usd contract from China Netcom, the other major fixed-line operator in the country, to expand the company's exiting PAS networks in the central provinces of Shandong and Henan, as well as in Beijing.
UTStarcom holds more than 50 pct of the market for PAS handsets in China, the company said in an earlier statement.
PAS, also called Xiaolingtong, or Little Smart, is a low-cost service with limited mobility provided by fixed-line operators such as China Telecom and China Netcom.
There are currently over 65 mln PAS subscribers in China and analysts expect the figure to reach 90.41 mln by 2007. They expect 6.4 bln yuan to be invested in PAS infrastructure over the next three years.
China Telecom and China Netcom are the parents of overseas listed China Telecom Corp Ltd (HK 0728; ADR CHA) and China Netcom Group Corp (HK 0906).
(1 usd = 8.3 yuan)
tom.wang@xinhuafinance.com
tom/amj/dk
For more information and to contact AFX: www.afxnews.com and www.afxpress.com
© 2005 AFX News
