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UTStarcom inks 20M contract with China Netcom

Posted: 08 Nov 2004 ?? ?Print Version ?Bookmark and Share

UTStarcom Inc. has signed a contract at about $20 million with China Netcom Corp. (CNC) to expand CNC's existing IP-based PAS (personal access system) (iPAS) network in seven cities in Liaoning, China.

As the PAS market in China matures, operators are focusing their spending on optimizing and expanding existing networks rather than investing in new systems. UTStarcom expects to see increased gross margins on PAS handsets next year through the introduction of the company's internally designed power amplifiers this year and the integration of RF/baseband ASIC chipsets into PAS handsets in the first half of 2005. UTStarcom believes that the combination of these two enhancements should result in significant cost reductions and margin improvements on the company's PAS handsets over the course of 2005.

The PAS solution is designed to enable operators to extend their fixed-line networks with feature-rich wireless services, rapidly expand networks to meet increased subscriber demand, and seamlessly integrate broadband and future 3G technologies into their service portfolios.

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