UTStarcom Makes Significant Progress in China's 3G Technical Trials

date: May 23, 2002

UTStarcom, a provider of wireless, wireline and broadband access equipment, announced that following the successful completion of phase one of the MTNet 3G technical trials and having merited outstanding results among participants, it will advance to phase two of the trials in the summer of 2002. Meanwhile, the company has also received 10MHz IMT-2000 frequency usage approval for internal research and development 3G field trials in Shenzhen, Hangzhou, Shanghai and Beijing.

UTStarcom was one of the ten foreign and domestic WCDMA equipment suppliers named on November 1, 2001, to participate in China's technical trial of 3G mobile networks based on the 3GPP WCDMA standard through MTNet, a comprehensive testing facility for mobile communications. MTNet is under the management of China's Ministry of Information Industry (MII) Research Institute of Telecommunications Transmission (RITT).

"I cannot overstate how critical 3G will be to the future of China's expanding telecommunications infrastructure," said Hong Lu, President and CEO of UTStarcom. "We went beyond meeting all system requirements of the first phase of MTNet's 3G technical tests by also providing one of the latest versions of the WCDMA standard and demonstrating advanced 3G features and services such as VOD and high bandwidth Internet access. In addition, we were able to secure a frequency usage permit for internal 3G R&D trials in four major cities, and are also, alongside a limited number of vendors, working closely with a major operator's R&D center for its 3G related projects."

Commencing February 25, UTStarcom successfully passed all of phase one test cases in just 10 days. By March 12, 2002, the company had not only provided a complete 3GPP R99 compliant system, including core networks (MSC, GSN, HLR, etc), network management, RNC, Node B and user equipment emulators, but also had demonstrated a total 3G solution showing stable and consistent performance with IP-transport technology. The results of phase one testing insured UTStarcom's eligibility to participate in phase two 3G trials, which will take place in multiple cities. Phase two will test network equipment and terminals with later 3GPP R99 standards and will also focus on interoperability tests between different vendors and an operator's field trial. This testing may last for up to one year. It is widely held that China's MII will make several 3G related decisions based on or in parallel with the phase two technical tests.

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