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.
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