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UTStarcom Wins Multi-Million Dollar China Telecom Research Institute RFP for Manufacturing 5G Transport Network Routers

1. UTStarcom won a contract for disaggregated routers from China Telecom Research Institute. 2. 70% of STN-A1 routers and 100% of STN-A3 routers awarded to UTStarcom. 3. Collaboration advances from product design to volume manufacturing. 4. The project supports China Telecom's 5G network capabilities. 5. UTStarcom strengthens its leadership in the Chinese telecom equipment market.

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Why Bullish?

This significant contract win could boost revenues, echoing past contract successes that positively affected stock prices.

How important is it?

This contract is likely to lead to substantial future revenue, significantly impacting UTSI's valuation.

Why Long Term?

Sustained revenue growth from the contract over time may enhance UTSI's market position long-term.

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January 22, 2025 04:15 ET  | Source: UTStarcom Holdings Corp. HANGZHOU, China, Jan. 22, 2025 (GLOBE NEWSWIRE) -- UTStarcom (“UTStarcom” or the “Company”) (NASDAQ:UTSI), a global telecommunications infrastructure provider, today announced that it has been selected as a major winner of the RFP "Self-developed STN-A Equipment Hardware Production and OEM Procurement Project" from Guangdong Research Institute of China Telecom Co., Ltd (“China Telecom Research Institute”) for manufacturing of disaggregated router hardware platforms intended for use on China Telecom’s STN network – China Telecom’s metropolitan area network, which is crucial for supporting its 5G mobile network services, as well as enterprise, broadband, cloud and other services. China Telecom Research Institute is an innovative professional technology research institution of China Telecom, one of the major telecom network operators in China. The RFP covers the manufacturing of a large number of STN-A1 and STN-A3 carrier-grade disaggregated routers hardware. The project is divided into two packages, with UTStarcom awarded a separate frame contract for each package with specific router quantities to be determined in purchase orders that will follow: Package 1: Manufacturing of STN-A1 routers (1RU pizza-box, 300Gbps switching capacity). UTStarcom was awarded 70% of this package.Package 2: Manufacturing of STN-A3 routers (4RU modular chassis, 800Gbps switching capacity). UTStarcom was awarded 100% of this package. This new contract builds upon UTStarcom’s ongoing collaboration with China Telecom Research Institute, which has focused on developing a “white-box” disaggregated router platform optimized for 5G transport networks as announced before. “This RFP win marks an important milestone in UTStarcom’s cooperation with China Telecom Research Institute and China Telecom, as we advance from product design services to volume manufacturing of STN routers for China Telecom’s 5G transport network,” said Mr. Li Hua, UTStarcom’s Chief Executive Officer. “Network disaggregation technology has been one of the key strategic focus areas for UTStarcom in recent years. It attracts telecom operators with its potential to break vendor lock-in, reduce costs, and achieve open, future-proof solutions tailored to specific operator’s needs. These new contract awards further confirm UTStarcom’s leadership in designing and manufacturing of disaggregated network products, and strengthen our position in the Chinese telecom equipment market.” About UTStarcom Holdings Corp. UTStarcom is committed to helping network operators offer their customers the most innovative, reliable and cost-effective communication services. UTStarcom offers high performance advanced equipment optimized for the most rapidly growing network functions, such as mobile backhaul, metro aggregation and broadband access. UTStarcom has operations and customers around the world, with a special focus on Japan, India and China. UTStarcom was founded in 1991 and listed its shares on the Nasdaq Market in 2000 (symbol: UTSI). For more information about UTStarcom, please visit http://www.utstar.com. About China Telecom Research Institute Guangdong Research Institute of China Telecom Co., Ltd (“China Telecom Research Institute”) is a professional innovative technology research institution of China Telecom Group. China Telecom Research Institute mainly serves the internal needs of the company group and aims to meet the needs of China Telecom's strategic planning, core technology research, management decision-making as well as production and operation support. It is mainly engaged in studying of cutting-edge technologies and related applications, development strategy research, network technology research, market and management strategy research, and carries out research and development of external cooperation projects. The Institute has gradually developed into a comprehensive base for China Telecom’s core technology research, product development, experimental testing, as well as a training center for hi-tech talents. For investor and media inquiries, please contact: UTStarcom Holdings Corp.Tel: +86 571 8192 8888Ms. Shelley Jiang, Investor RelationsEmail: utsi-ir@utstar.com / shelleyjiang@utstar.com

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