ARRIS and UTStarcom, Inc. Announce Agreements to Jointly Develop and Market Fixed Mobile Convergence (FMC) Solutions
April 07 2006 - 4:53PM
PR Newswire (US)
ARRIS to Develop and Market Quadruple Play-Enabling Technology to
Cable MSOs Worldwide SUWANEE, Ga., April 7 /PRNewswire-FirstCall/
-- ARRIS (NASDAQ:ARRS) today announced that it has entered into a
joint development agreement, a licensing agreement and a supply
agreement with UTStarcom, Inc. (NASDAQ:UTSI) that will together
enable the fourth leg of the quadruple play for cable Multiple
System Operators (MSOs) worldwide. The joint solution will allow
end customers with a Wi-Fi-enabled dual-mode handset to seamlessly
roam between their cellular and Wi-Fi connections (a service
commonly referred to as Fixed Mobile Convergence (FMC)). ARRIS' FMC
solution enables MSOs to add mobility features to their service
portfolio and leverage their existing VoIP infrastructure using
industry standard protocols. As IP Multimedia Subsystem (IMS) and
PacketCable(TM) 2.0 specifications are finalized, the solution's
software will evolve to meet those requirements and new
applications. UTStarcom's Continuity(TM) FMC solution is designed
to increase network efficiency and coverage through either wireline
or wireless networks. It can also enable end users to access a
richer set of services and features than were available in the
past. Under the terms of the licensing agreement, ARRIS will
license FMC software from UTStarcom. The licensing agreement has an
initial term of three years, after which ARRIS will have the right
to exercise an option to retain rights in the software. Under the
conditions of the development agreement, both parties will jointly
create improvements and new and enhanced features for emerging FMC
solutions according to the set milestones. The supply agreement
calls for UTStarcom to provide ARRIS with the hardware and software
for sale to the global cable MSO community. ARRIS will have
exclusive marketing rights to the global MSO community per the
terms of the supply agreement and UTStarcom will retain exclusive
marketing rights to the telco community. The ARRIS FMC solution is
planned for shipping in the second half of 2006 with early customer
testing already underway. UTStarcom's Continuity FMC solution is
available today and is currently in telecom carrier trials. The
ARRIS FMC solution consists of an ARRIS Mobility Application Server
(MAS) located in a cable headend that controls the communication
between a cable operator's telephony operations and the cellular
operator's network. The communication between networks allows for
seamless mobility between cellular and IP access networks via
standardized cellular signaling mechanisms. In the home, the
customer's dual-mode handset voice traffic and signaling is carried
via their WiFi connection (such as the ARRIS Touchstone(R) TM552
wireless telephony modem (E-MTA)) through the High Speed Internet
access provided by the MSO's CMTS (such as the ARRIS Cadant(R)
C4(TM) CMTS). "We are very excited to be able to offer cable
operators this elegant fixed mobile convergence solution," said
ARRIS New Business Ventures President Bryant Isaacs. "This new
capability allows ARRIS to further equip the cable industry with
another tool in providing end users with the ultimate converged
services portfolio." UTStarcom's Continuity solution includes an
FMC Feature Server (FMC-FS) based on the company's mSwitch(R) IP
softswitch platform and a dual-mode Wi- Fi/GSM handset. With
Continuity, fixed and mobile service providers can deliver a
unified service over both wireline and wireless networks. End users
can interconnect to the fixed-line or cellular network
transparently and roam across them seamlessly regardless of their
location, communication device, or network access method. The
Continuity architecture is designed to enable all service providers
to continue to add mobility feature servers for CDMA, WiMAX, and
other services well into the future, such as streaming media.
"These agreements will allow UTStarcom to expand its innovative FMC
solutions to a broader set of service providers," said Farshid
Mohammadi, UTStarcom's General Manager, Switching. "UTStarcom's
IMS-based Mobility Application Server utilizes MSOs and service
providers' existing assets to provide fixed mobile convergence. Our
Mobile Applications Server enables MSOs to offer converged
solutions to their customers with the goal of delivering multimedia
services through the customer's device of choice." About ARRIS
ARRIS provides broadband local access networks with innovative
video, high-speed data and telephony systems for the delivery of
voice, video and data to the home and business. ARRIS complete
solutions enhance the reliability and value of converged services
from the network to the subscriber. Headquartered in Suwanee,
Georgia, USA, ARRIS has design, engineering, distribution, service
and sales office locations throughout the world. Information about
ARRIS products and services can be found at http://www.arrisi.com/.
About UTStarcom, Inc. UTStarcom is a global leader in IP-based,
end-to-end networking solutions and international service and
support. The company sells its broadband, wireless, and handset
solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables its
customers to rapidly deploy revenue-generating access services
using their existing infrastructure, while providing a migration
path to cost-efficient, end-to-end IP networks. Founded in 1991 and
headquartered in Alameda, California, the company has research and
design operations in the United States, China, Korea and India.
UTStarcom is a FORTUNE 1000 company. For more information about
UTStarcom, visit the company's Web site at http://www.utstar.com/.
FORWARD-LOOKING STATEMENTS This release includes forward-looking
statements by and about UTStarcom, including the foregoing
statements regarding the anticipated joint development and
improvement of the FMC solution by UTStarcom and ARRIS, the
anticipated impact of the FMC solution on MSOs, the expectation
regarding the evolution of the FMC solution, the expected manner of
implementation of the joint venture between UTStarcom and ARRIS,
the anticipated shipment schedule and consumer testing of the FMC
solution, the expected components of the FMC solution, the
anticipated ability of the FMC solution to provide seamless
mobility between cellular and IP networks and its impact on home
use of dual-mode handsets, and the anticipated ability of the FMC
solution to allow service providers to provide end-users with a
converged service portfolio and multimedia services through the
end-user's device of choice. These statements are forward-looking
in nature and subject to risks and uncertainties that may cause
actual results to differ materially. These risk factors include
rapidly changing technology, the changing nature of global
telecommunications markets, the termination of significant
contracts and/or strategic relationships, the direction and results
of future research and development efforts, evolving product and
applications standards, reduction or delays in system deployments,
product transitions, potential non-realization of backlog, changes
in demand for and acceptance of UTStarcom's products, general
adverse economic conditions, and trends and uncertainties such as
changes in government regulation and licensing requirements.
UTStarcom also refers readers to the risk factors identified in its
latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q
and Current Reports on Form 8-K, as filed with the Securities and
Exchange Commission. DATASOURCE: ARRIS CONTACT: Alex Swan of ARRIS
Media Relations, +1-678-473-8327, or ; or Chesha Kamieniecki,
Director of Investor Relations of UTStarcom, Inc., +1-510-749-1560,
or Web site: http://www.arrisi.com/ http://www.utstar.com/
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