Qualcomm Inc (QCOM)

[khemara_qc]

China Reaches 50 Million PAS Subscribers

ALAMEDA, Calif., June 28 /PRNewswire-FirstCall/ -- UTStarcom, Inc. , a global leader in IP access networking and services, today announced that more than 50 million people currently subscribe for PAS(TM) (Personal Access System) service in China, 58 percent of which are on networks powered by UTStarcom technology. As of the end of May, UTStarcom had more than 29 million PAS subscribers in China.

"PAS continues to be a key revenue driver for both China Telecom and China Netcom in provinces throughout Mainland China," said Ying Wu, chief executive officer and chairman of UTStarcom China. "Despite its tremendous subscriber growth rate to date, UTStarcom believes that the market demand for PAS is still very strong, as only four percent of the population currently subscribe for PAS service."
Since its introduction in China in 1997, PAS has experienced tremendous subscriber growth as users discover the high-quality voice and data capabilities of this affordable wireless technology. At the end of 2002, total PAS users in China exceeded 12 million people and doubled to more than 32 million by December 2003. In Q1 2004, nearly 10 million subscribers signed up for PAS, compared with three million new users during the same period of last year. Currently, PAS has been developed in all 31 provinces of Mainland China. Current subscriber growth forecasts that total PAS users will top 70 million by the end of 2004 and 100 million by December 2006.
The PAS Advantage
UTStarcom's PAS and iPAS(TM) (IP-Based Personal Access System) services offer service providers and subscribers unique and attractive advantages over competing wireless services. For operators, PAS provides a two to three year return on investment (ROI), increased average revenue per user (ARPU), and the ability to support new applications and diversified value-added services seamlessly. More than 55 percent of new fixed-line new users in China are PAS subscribers, making PAS a major revenue force and business focus of China's two fixed-line operators, China Telecom and China Netcom. PAS offers operators an easy and affordable means of replacing existing copper infrastructure with superior wireless telecommunications.
For subscribers, PAS provides affordable mobile telecommunications service with an array of diversified features. Besides high-quality voice service, UTStarcom PAS users enjoy applications including short messaging service (SMS), C-MODE based web browsing, 64Kbps wireless Internet access, and location-based services. Currently 99 percent of all PAS subscribers are SMS-enabled in China and the service will soon be interconnected with GSM and CDMA systems, which will further enhance the growth of PAS. In Q1 2004, PAS subscribers sent more than 372 million SMS messages, an increase of more than 120 times that in the first quarter of last year.
UTStarcom believes its expertise in IP technology with its mSwitch(TM) IP-core platform gives it a distinct advantage over other vendors in the China market. Operators who already deploy PAS can also offer subscribers 3G CDMA services without any additional expenditure on infrastructure once licensing is approved in China.
PAS Wireless Access Solutions
UTStarcom's wireless network solutions enable a rapid network expansion and an easy migration from fixed to wireless networks, enabling service providers to offer wireless voice and data services within a city or community. Marketed as a low-cost investment option for wireless local telephone service providers, the PAS system features advanced voice and data services within a flexible network architecture that are designed to be seamlessly integrated with future 3G and broadband technologies. With deployments throughout Mainland China and Taiwan, Vietnam, Thailand, Africa, and Latin America, UTStarcom is the leader in the worldwide PAS market.
About UTStarcom, Inc.
UTStarcom is a global leader in IP access networking solutions and international service and support. The company sells its wireline, wireless, optical and switching solutions to operators in both fast growth and established telecommunications markets around the world. UTStarcom enables its customers to rapidly deploy revenue-generating access services using their existing infrastructure, while providing a migration path to cost-efficient end-to-end IP networks. Founded in 1991 and headquartered in Alameda, California, the company has research and design operations in New Jersey, China, and India.
For more information about UTStarcom, visit the company's Web site at http://www.utstar.com/.
Forward-Looking Statements
The foregoing statements regarding, without limitation, forecasted growth in the total number of PAS users, strong market demand for PAS, the interconnection of PAS service with GSM and CDMA, licenses from the Chinese government allowing UTStarcom to provide 3G CDMA services, integration of the PAS system with future 3G and broadband technologies. migration from fixed to wireless networks, PAS' ability to provide service providers a two to three year return on investment and increased average revenue per user and its ability to support new applications and diversified, value-added services, are subject to risks and uncertainties that may cause actual results to differ materially. These factors include rapidly changing technology, the rapidly changing nature of Chinese and global telecommunications markets, possible delays in system deployments or product introductions, possible downturns in the telecommunications markets of China generally and worldwide, the termination of new contracts, partnerships or alliances, and other uncertainties, such as changes in government regulation and licensing requirements and economic and political stability in China generally and worldwide. UTStarcom also refers readers to the risk factors identified in its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K as filed with the Securities and Exchange Commission.

http://www.tmcnet.com/usubmit/2004/Jun/1052220.htm