UTStarcom, Inc., a global leader in IP access networking and services, today announced that it has signed an expansion contract valued at approximately $23 million with China Telecom.

The contract will enable further deployments of UTStarcom's IP-based PAS (Personal Access System) (iPAS) system in the Yunnan province.

Driven by record subscriber growth and market demands, this contract marks the sixth successful expansion of the PAS network in the Yunnan Province. Currently, UTStarcom's network boasts 750,000 subscribers, representing 60 percent of the total PAS users in Yunnan. Upon project completion, the UTStarcom network will have capacity for two million subscribers. In addition, the expansion project will help to optimize the existing network to offer the highest quality of service and improve coverage.

PAS continues to be a key driver of business for China Telecom in the Yunnan province. As of November 2003, PAS subscribers represented approximately one quarter of total fixed-line users.