UTStarcom, Inc., a provider of IP access networking and services, today announced that it has signed a contract valued at approximately $55 million with China Telecom Corporation (CTC) to deploy its IP-based PAS (Personal Access System) (iPAS) network in the central city area of Shanghai.

UTStarcom is currently the leading provider of both iPAS infrastructure and handsets in Shanghai with approximately 70 percent market share of the infrastructure market and more than 50 percent of the handset market. Considered by many to be the country's industrial, commercial, and cultural capital, Shanghai is the largest and most densely populated city in China, with a population estimated at more than 20 million people. PAS was introduced in suburban areas of Shanghai in May 2003 and reached more than 500,000 subscribers within one year.

iPAS will offer city residents an alternative to existing cellular services in Shanghai, where demand for affordable, high-quality wireless communications is strong. According to Shanghai China Telecom officials, more than 15,000 people subscribe for iPAS service each week in Shanghai now that service has been extended to the city center. Shanghai China Telecom has set up an aggressive marketing plan to promote the service throughout the city and hopes to have more than one million subscribers by the end of 2004.