UTStarcom wins major RFP to manufacture disaggregated routers for China Telecom's 5G network, enhancing ongoing collaboration.
Quiver AI Summary
UTStarcom, a global telecommunications infrastructure provider, has been awarded a significant contract by the Guangdong Research Institute of China Telecom to manufacture hardware for disaggregated routers as part of the "Self-developed STN-A Equipment Hardware Production and OEM Procurement Project." This contract will support China Telecom’s STN metropolitan area network, vital for its 5G services and other operational needs. The project consists of two packages: UTStarcom secured 70% of the STN-A1 router manufacturing and 100% of the STN-A3 router manufacturing. This marks an advanced stage in UTStarcom's ongoing collaboration with China Telecom, focusing on innovative network solutions that reduce costs and enhance flexibility in telecom operations. The CEO, Mr. Li Hua, emphasized the importance of this milestone in solidifying UTStarcom's leadership in the disaggregated network products sector within the Chinese market.
Potential Positives
- UTStarcom has been awarded a significant contract from China Telecom Research Institute for the manufacturing of carrier-grade disaggregated routers, enhancing its role in the telecom industry.
- The company secured 70% of the STN-A1 package and 100% of the STN-A3 package, indicating a strong position in the project and commitment from a major telecom operator.
- This contract underscores UTStarcom's shift from product design to volume manufacturing, marking a significant milestone in its collaboration with China Telecom.
- The focus on network disaggregation aligns with current industry trends, reinforcing UTStarcom's leadership in cost-effective, open network solutions tailored for telecom operators.
Potential Negatives
- Dependence on a single client, China Telecom, for significant business may raise risks associated with revenue concentration and potential service level agreements.
- The press release emphasizes competition in the telecom equipment sector, suggesting ongoing challenges in differentiating products and maintaining market share.
FAQ
What is the recent RFP win for UTStarcom?
UTStarcom won the RFP for manufacturing disaggregated router hardware for China Telecom's STN network supporting 5G services.
How many router platforms is UTStarcom manufacturing?
UTStarcom is manufacturing STN-A1 and STN-A3 carrier-grade disaggregated routers under the awarded RFP project.
What is the significance of the STN-A routers?
The STN-A routers are crucial for enhancing China Telecom’s metropolitan area network, enabling robust 5G mobile services and more.
Which company awarded the contract to UTStarcom?
The contract was awarded by Guangdong Research Institute of China Telecom Co., Ltd., part of China Telecom.
What are the benefits of network disaggregation technology?
Network disaggregation reduces vendor lock-in, lowers costs, and provides open, customizable solutions for telecom operators.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
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 8888
Ms. Shelley Jiang, Investor Relations
Email:
[email protected]
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