~ Le Viêt Nam, aujourd'hui. ~
The Vietnam News

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UTStarcom signs expansion contracts in Vietnam for its IP-Based PAS systems

ALAMEDA - UTStarcom, Inc., a global leader in IP access networking and services, today announced that it has signed an expansion contract with Vietnam Post and Telecommunications (VNPT) valued in excess of U.S. $10 million. Under the terms of this contract, UTStarcom will expand deployments of its IP-based PAS (Personal Access System) (iPAS(TM)) citywide wireless access system in Hanoi and Ho Chi Minh, the two largest cities in Vietnam.

"UTStarcom is extremely pleased with the development in Vietnam and views this expansion contract as an opportunity to build on our initial success and the strength of our relationship with VNPT," said Nguyen Minh Duc, general manager of UTStarcom, Vietnam. "Based on this initial success, UTStarcom expects to continue to work very closely with VNPT to extend iPAS service to additional cities throughout Vietnam. We are confident that our company's solutions will make a positive difference in Vietnam, and that we can replicate the tremendous success that UTStarcom has achieved in China with our partner, VNPT, in Vietnam. We believe that there is no other company at this time that can provide more cost-effective telephony solutions for VNPT than UTStarcom."

VNPT officially launched iPAS service under the "Cityphone" brand name in Hanoi in December 2002 and in Ho Chi Minh in February 2003. To date, VNPT has attracted nearly 50,000 subscribers to its networks. In addition, the "Cityphone" iPAS service now includes value-added data services (VAS) such as short messaging and multi-media messaging. These new value-added services are interoperable with VNPT's GSM network and 64kbps wireless Internet access via the handset, laptop computer, or personal digital assistant. VNPT also offers pre-paid services to its customers. VNPT is working with UTStarcom to launch six new handset models in 2004 in Vietnam, including a high-end, dual-mode handset that operates on VNPT's GSM and PAS networks.

With a population of approximately 80 million people, Vietnam has an annual economic growth rate of nearly seven percent and a fixed-line teledensity rate of less than five percent. This compares with 70 percent teledensity in the United States, 60 percent teledensity in most of Western Europe, and approximately 20 percent teledensity in China. More than half of the population in Vietnam is under 20 years of age, and there is a high demand for next-generation telecommunications services. In fact, according to the International Telecommunications Union, Vietnam is second only to China among high-growth rate telecommunications markets. Telecommunications development is considered by the Vietnamese government to be one of the country's keys to economic growth and is therefore considered a high priority in the economic development agenda.

PR Newswire - December 22, 2003.