1. Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density and Broadband penetration” CANTO – 2005 / St. Kitts – West Indies Marcio Fonseca – Marketing Manager Cost-effective, Profitable, IP-Based Deployments of Inclusion Technologies in Developing Countries “Models for a commercially viable increase in Tele-density and Broadband penetration” CANTO – 2005 / St. Kitts – West Indies Marcio Fonseca – Marketing Manager UTStarcom Inc.

2. 2 Who is UTStarcom? Founded in 1991, HQ in Alameda, California NASDAQ listed since March 2000 – (ticker symbol: UTSI) Over 300 customers worldwide Three consecutive years of growth Over 70 million ports deployed worldwide Over 40 million iPAS subscribers in China (PHS Technology) Over 100K iPAS Subscribers in the Caribbean and Latin America Shipped over 30 million handsets in 2003/2004 The largest Softswitch deployment in the world The largest GE-PON network in the world Introduced 4 new key products in 2004 –MovingMedia 2000, MovingMedia 6000, GE-PON & mVision UTStarcom is a worldwide leader in the development of wireline, wireless, optical and access switching solutions. By working with UTStarcom, service providers around the world can now generate new revenue by offering their subscribers a rich array of premium voice, data and video communications services

3. 3 Why UTStarcom? TechnologyInnovatorGlobalPresence Strong Financial Performance Developing Solutions that Support the Evolution of Profitable Telecommunications Services Voice Copper Circuit Wireless Broadband Packet (IP) PAS,WiFi & 3G IP DSL & PON SoftSwitch & TVoIP

4. 4 Market Recognition # 31 - “100 Fastest-Growing Companies” # 33 - “100 Hot Growth Companies” - June 2004, 5th fastest growing company # 9 – “Top 25 Fastest Growing Tech Companies” **two years straight Top 10 - Investor’s Business Daily 100 # 1 - “Fastest Growing Tech Companies”

5. 5 Technology and Industry Leadership #1 #2 #1#1 #2#2 Wireless Wireline Market Share Worldwide in PAS/iPAS Market Share Worldwide in CDMA PDSN Market Share Worldwide in Media Gateways Market Share Worldwide in IP-DSLAM Market Share Worldwide in SoftSwitch Source: Infonetics Research Inc., Synergy Research, First Call Reports, Internal Estimates

6. 6 Global Presence and Strong Performance Asia PacificEMEA Americas Three consecutive years of growth 2002 - $981.8M USD 2003 - $1.96B USD 2004 - $2.70B USD $901.8M Q1/05 vs. $622.3M Q1/04 (44.9% increase) $369 $627 $982 $1,964 $ Millions $2,950

7. 7 Strategic Acquisitions 2003/2004 CDMA2000 450/800/1900MHz Audiovox Communications Corporation (ACC) Mobile Handsets Data Enhanced Mobile Switching Solutions

8. iPAS ®, MovingMedia 2000 ®, IP-DSLAM, and GE-PON Models for a commercially viable increase in Tele-density and Broadband penetration in Developing Countries

9. 9 Regional Statistics and Comments Other Countries Comments: - Great opportunity for ISP’s to join forces with hardware providers to increase overall PC / Internet penetration (packaged deals, i.e. MSN) - Specific opportunities for immediate increase of Teledensity. - Developed countries usually have higher broadband penetration rates in general. - Total Broadband penetration for the developed world is 14.1%. Internet usage in the region is 13.78%. Conversion from dial-up to Broadband will result in added revenues for carriers. - Broadband deployment is the path for future triple-play services which will add to the bottom line of carriers.

10. 10 iPAS® - PHS WLL technology for low Tele-density areas Key Points: WLL application very economic Implementation via Micro-cells with 500m to 1Km in range Quickly deployment for rapid increase of Tele-density.

11. 11 Success Stories – Ti Telefon and Multifon Teleco Haiti / Multifon Honduras - “Ti Telefon” and “Multifon” - 50K Subscribers in 3 years of operation in Haiti. 50K subs in Honduras in less than a year. - First really affordable option for telecommunications services in both countries - Known as diesel phone in Haiti. - Stable platform fully operational through hurricanes and political turmoil. - Responsible for immediate increase of more than 30% in country’s Tele-density. - UTStarcom support extends itself to everything from marketing to the operation of the network

12. 12 MovingMedia 2000 ® - IP Based CDMA 2000 1X solution Applications: Wireless Networks Wireless Networks Tandem Networks Tandem Networks IP-Based CDMA2000 1X IP-Based CDMA2000 1X Packet Network Sonata SE Wireless SoftSwitch Feature Server 1G/2G/2.5G RAN/BSS AMPS GSM/GPRS CDMA2000 1X SS7 PSTN Sonata OMC E1 or T1 MF R1, MFC R2, ISDN PRI or ISUP / SS7 Sonata IMG Intelligent Media Gateways CDMA iCell IP-BSS Voicemail, Prepaid, SMS, Internet Packet Core Network AAA PDSN

13. 13 MovingMedia 2000 ® - Key Value Proposition: Rapid Deployment and Transmission Cost Savings Traditional Bandwidth Required: 22 T1 Annual cost$1,056,000 MSC Server IMG PSTN Local PSTN iCell IMG Managed Packet Network 563Kps UTStarcom’s All IP Network Bandwidth Required:Partial T1 Annual cost $17,592 A transmission cost comparison of UTStarcom’s All IP NGN vs. traditional wireless solutions indicates potential savings of 98%. BSC PSTN 5 T1 17 T1 BTS Local PSTN MSC Assumes 5 iCells, 85% local traffic

14. 14 IPDSLAM – Broadband Solution Where an actual copper infrastructure exists, operators may deploy broadband service utilizing IP-DSLAM’s to a neighborhood or a cluster of buildings or a single building if it wishes to do so. The key for any successful broadband deployment is the cost of the service. Research shows that customers are willing to embrace new technologies that they may afford.

15. 15 IPDSLAM – Brasil Telecom Key points: - Late deployment - Very aggressive pricing strategy - Available plans: Turbo Lite – 50 Hours of access for $ 9.95 monthly @ 150Kbps Unlimited Usage @ 400Kbps for $ 31.95 - Expected subscriber base: more than 1 million subscribers in less than a year of operation.

16. 16 GE-PON – Passive Optical Network Where no copper exists, operators may decide to go directly with GE-PON for their last mile

17. 17 SIP/MGCP IP CORE OLT GE PON SoftSwitch Call Control & Signaling SUBSCRIBER PON ONU VOICE, DATA & VIDEO DSL CPE SUBSCRIBER PON ONU VOICE, DATA & VIDEO DSL CPE PSTN Internet PSTN/PLMN GATEWAY TMG GE-PON – Triple Play Services Where GE-PON networks are deployed the operator can fully explore that market’s potential by offering triple play services: Telephony, TVoIP, Broadband, VoIP, VOD, Gaming, and many more to come…

18. 18 BB TV - IP BB Gaming – Online Gaming Yahoo! BB - WiFi BB Phone –VoIP BB Video – Video on Demand Yahoo! BB – Broadband Access Yahoo BB! – Triple play utilizing UTStarcom Infrastructure $35.29/month $10.37/ month $4.07/month$3.01/month $28.30/month $9.27/month Total = $90.31/monthly ARPU

19. 19 Conclusions Network deployments need to go hand in hand with an initial demand study for the applications. In other countries, broadband penetration has been a direct consequence of its pricing. Any network investment must add to the bottom line by saving OPEX or increasing revenue. Search for network vendors that support the operation from all sides. Including marketing and sales of the solution to the end-user such as UTStarcom

20. QUESTIONS??? For more information, or for a copy of this presentation please email marcio.fonseca@utstar.com QUESTIONS??? For more information, or for a copy of this presentation please email marcio.fonseca@utstar.com