ALAMEDA, Calif. -- UTStarcom, Inc. (Nasdaq: UTSI), a leading global provider of wireless and wireline access and IP switching solutions, today announced it has been named the world's second- largest provider of DSLAM products for the second quarter of 2003 in separate reports by Infonetics Research and Synergy Research Group.

"UTStarcom remains a top provider in the worldwide DSLAM market and is the leader in the IP-DSLAM market worldwide," said Hong Lu, president and chief executive officer of UTStarcom, Inc. "Our IP-based DSLAM solution continues to be popular with Asian service providers who are eager to deploy an all-IP solution to cost effectively offer additional value-added services. Because IP technology is crucial for maintaining existing customers and winning new subscribers, UTStarcom believes service providers around the world will learn from Asia's successful investment in all-IP deployments."

According to Infonetics Research, UTStarcom ranked second in the number of worldwide DSLAM ports shipped. In the second quarter, the company shipped more than 794,000 ports, representing approximately 10 percent of the overall DSLAM market. In the IP-DSLAM category, UTStarcom leads with 62 percent of ports shipped and 61 percent of revenue.

"IP-based DSLAMs are gaining significant momentum in the DSL market, especially in Asia Pacific, because of their ability to deliver new IP services such as virtual private networks (VPN), voice-over-IP (VoIP), and video-on-demand (VoD)," said Michael Howard, principal analyst and co-founder of Infonetics Research. "Currently, one out of every six dollars is being spent on IP-DSLAMs, and by 2006, roughly one-third of all DSLAM ports will be on IP-DSLAMs. In contrast, we expect ATM DSLAM revenue to start declining in 2005. North American service providers plan to stop buying ATM DSLAMs in the next few years and the RBOCs have specified migration plans from ATM access to IP/Ethernet access."

In its quarterly worldwide broadband market report, Synergy Research Group found that UTStarcom shipped nearly 796,000 xDSL ports in the second quarter. Even with a seasonal port shipment decrease from the previous quarter, UTStarcom's port shipment market share was approximately 10 percent, placing it second in the market.

"Despite a decrease in ports shipped compared to the company's first quarter results, UTStarcom is maintaining its ranking as the second-largest DSLAM provider worldwide in terms of port shipped," said (Stan) Zhiyong Zou, an analyst at Synergy Research Group. "Migrating away from ATM-based technology to invest in IP-DSLAM is the way to go because IP meets the demand for more economical and scalable deployment of high-bandwidth voice, data, and video applications."

Carriers Choosing IP-Based DSLAMs

Carriers around the world are choosing IP- based DSLAMs in place of ATM- based DSLAMs as they architect their networks with Ethernet and IP technologies that will allow for the delivery of new IP services such as VPNs, VoIP, and VoD.

Carriers can use UTStarcom's AN 2000 IB(TM) IP-DSLAM to migrate their access networks seamlessly and economically from narrowband voice-only services to full broadband capabilities. The company's platform enables carriers to generate additional revenue by offering customers the triple play of data, voice, and video services over a single copper loop. The AN-2000 IB is economical to deploy, eliminating the need for a costly ATM infrastructure and giving carriers a faster return on their investment.

UTStarcom Inc.

Infonetics Research Inc.

Synergy Research Group Inc.