UTStarcom Inks China Deal

UTStarcom has signed an agreement with Best Tone Information Service Corp., a wholly-owned subsidiary of China Telecom Corp., with the intent to deploy a video information distribution network in the Hunan province of China. This is the second large-scale interactive advertising system that UTStarcom's end-to-end RollingStream IPTV platform will power in China, both of which are expected to change the way subscribers view advertisements. UTStarcom previously announced the launch of an interactive advertising network with Guangxi Telecom Co., also a wholly-owned subsidiary of China Telecom, in July 2008.

Best Tone is working with UTStarcom to build and operate a Chinese-specific, building-based video information network and distribution system, with 3,500 iPAD1000 terminals scheduled to go live in office buildings, government facilities, supermarkets, hotels, hospitals and schools in the Hunan Province this year. The iPAD1000 technology integrates UTStarcom's RollingStream IPTV set-top boxes, an ADSL modem, Wi-Fi adapter, IPTV network connection and video monitor into a single terminal station. The network, intended to generate new revenue opportunities by streaming commercial advertisements throughout Hunan Province, is expected to support a total of 10,000 terminals in the region upon completion of the project.