UTStarcom Wins Multi-Million Dollar China Telecom Research Institute RFP for Manufacturing 5G Transport Network Routers
UTStarcom (NASDAQ:UTSI) has won a major RFP from China Telecom Research Institute for manufacturing disaggregated router hardware platforms. The contract involves two packages for China Telecom's STN network, which supports 5G mobile network services, enterprise, broadband, and cloud services.
In Package 1, UTStarcom secured 70% of the manufacturing contract for STN-A1 routers (1RU pizza-box, 300Gbps switching capacity). For Package 2, the company was awarded 100% of the manufacturing for STN-A3 routers (4RU modular chassis, 800Gbps switching capacity). The exact quantities will be determined in subsequent purchase orders.
This contract extends UTStarcom's collaboration with China Telecom Research Institute in developing 'white-box' disaggregated router platforms for 5G transport networks, marking the company's progression from product design services to volume manufacturing.
UTStarcom (NASDAQ:UTSI) ha vinto un'importante gara da parte del China Telecom Research Institute per la produzione di piattaforme hardware router disaggregati. Il contratto prevede due pacchetti per la rete STN di China Telecom, che supporta servizi di rete mobile 5G, servizi aziendali, broadband e servizi cloud.
Nel Pacchetto 1, UTStarcom ha ottenuto il 70% del contratto di produzione per router STN-A1 (pizza-box da 1RU, capacità di switching di 300Gbps). Per il Pacchetto 2, l'azienda ha ricevuto il 100% della produzione per router STN-A3 (chassis modulare da 4RU, capacità di switching di 800Gbps). Le quantità esatte saranno determinate in ordini di acquisto successivi.
Questo contratto estende la collaborazione di UTStarcom con il China Telecom Research Institute nello sviluppo di piattaforme router disaggregati 'white-box' per reti di trasporto 5G, segnando la progressione dell'azienda dai servizi di design del prodotto alla produzione in volume.
UTStarcom (NASDAQ:UTSI) ha ganado una importante licitación del China Telecom Research Institute para la fabricación de plataformas de hardware de enrutadores disgregados. El contrato involucra dos paquetes para la red STN de China Telecom, que soporta servicios de red móvil 5G, servicios empresariales, banda ancha y servicios en la nube.
En el Paquete 1, UTStarcom aseguró el 70% del contrato de fabricación para los enrutadores STN-A1 (pizza-box de 1RU, capacidad de conmutación de 300Gbps). Para el Paquete 2, la compañía fue adjudicada el 100% de la fabricación de enrutadores STN-A3 (chasis modular de 4RU, capacidad de conmutación de 800Gbps). Las cantidades exactas se determinarán en órdenes de compra posteriores.
Este contrato amplía la colaboración de UTStarcom con el China Telecom Research Institute en el desarrollo de plataformas de enrutadores disgregados 'white-box' para redes de transporte 5G, marcando el progreso de la empresa desde los servicios de diseño de productos hasta la fabricación a gran escala.
UTStarcom (NASDAQ:UTSI)는 중국 텔레콤 리서치 인스티튜트로부터 분리형 라우터 하드웨어 플랫폼 제조를 위한 주요 RFP를 수주했습니다. 이 계약은 5G 모바일 네트워크 서비스, 기업, 브로드밴드 및 클라우드 서비스를 지원하는 중국 텔레콤의 STN 네트워크를 위한 두 가지 패키지를 포함합니다.
패키지 1에서는 UTStarcom이 STN-A1 라우터 (1RU 피자 박스, 300Gbps 스위칭 용량) 제조 계약의 70%를 확보했습니다. 패키지 2에서는 STN-A3 라우터 (4RU 모듈러 섀시, 800Gbps 스위칭 용량)의 전체 제조를 수주했습니다. 정확한 수량은 이후 구매 주문서에서 결정될 것입니다.
이 계약은 UTStarcom이 5G 전송 네트워크를 위한 '화이트 박스' 분리형 라우터 플랫폼 개발에서 중국 텔레콤 리서치 인스티튜트와의 협력을 확대하며, 제품 설계 서비스에서 대량 생산으로 진행하는 것을 나타냅니다.
UTStarcom (NASDAQ:UTSI) a remporté un appel d'offres majeur du China Telecom Research Institute pour la fabrication de plateformes matérielles de routeurs désagrégés. Le contrat comprend deux paquets pour le réseau STN de China Telecom, qui prend en charge les services de réseau mobile 5G, les services d'entreprise, le haut débit et les services cloud.
Dans le Paquet 1, UTStarcom a obtenu 70 % du contrat de fabrication pour les routeurs STN-A1 (boîtier d'une unité, capacité de commutation de 300Gbps). Pour le Paquet 2, l'entreprise a été attribuée 100 % de la fabrication des routeurs STN-A3 (châssis modulaire de 4 unités, capacité de commutation de 800Gbps). Les quantités exactes seront déterminées dans des commandes d'achat ultérieures.
Ce contrat étend la collaboration d'UTStarcom avec le China Telecom Research Institute dans le développement de plateformes de routeurs désagrégés 'white-box' pour les réseaux de transport 5G, marquant la progression de l'entreprise du service de conception de produits à la fabrication en volume.
UTStarcom (NASDAQ:UTSI) hat einen wichtigen Ausschreibung von China Telecom Research Institute für die Herstellung von disaggregierten Router-Hardware-Plattformen gewonnen. Der Vertrag umfasst zwei Pakete für das STN-Netzwerk von China Telecom, welches 5G-Mobilfunkdienste, Unternehmens-, Breitband- und Cloud-Dienste unterstützt.
Im Paket 1 sicherte sich UTStarcom 70% des Herstellungsvertrags für STN-A1-Router (1RU-Pizza-Box, 300Gbps Switching-Kapazität). Für Paket 2 wurde dem Unternehmen 100% der Herstellung für STN-A3-Router (4RU-modulares Chassis, 800Gbps Switching-Kapazität) zugesprochen. Die genauen Mengen werden in nachfolgenden Bestellungen festgelegt.
Dieser Vertrag erweitert die Zusammenarbeit von UTStarcom mit dem China Telecom Research Institute bei der Entwicklung von 'White-Box'-disaggregierten Router-Plattformen für 5G-Transportnetze, was den Fortschritt des Unternehmens von Produktdesign-Diensten zur Serienfertigung markiert.
- Won major manufacturing contract with China Telecom Research Institute
- Secured 70% share of STN-A1 routers package
- Awarded 100% of STN-A3 routers package
- Expansion from design services to volume manufacturing
- None.
Insights
This contract win represents a major strategic breakthrough for UTStarcom in China's telecommunications infrastructure market. The company has secured predominant manufacturing rights for two critical router types: 70% share for STN-A1 routers (300Gbps) and 100% share for the higher-capacity STN-A3 routers (800Gbps).
The deal's significance extends beyond immediate revenue potential. By transitioning from design services to volume manufacturing, UTStarcom is positioning itself as an integral part of China Telecom's 5G infrastructure supply chain. The STN network serves as the backbone for China Telecom's metropolitan area network, supporting not just 5G services but also enterprise, broadband and cloud operations.
The focus on disaggregated router platforms is particularly strategic. This 'white-box' approach allows network operators to break free from vendor lock-in, potentially reducing costs by 30-40% compared to traditional integrated solutions. For UTStarcom, this positions them at the forefront of a growing industry trend toward open, customizable network architectures.
For investors, three key aspects deserve attention: 1) The multi-million dollar contract provides a new, potentially significant revenue stream 2) The high percentage allocation of manufacturing rights indicates strong confidence in UTStarcom's capabilities 3) The strategic positioning in disaggregation technology opens doors for similar contracts with other operators seeking cost-effective, flexible network solutions.
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: utsi-ir@utstar.com / shelleyjiang@utstar.com
FAQ
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