BSNL EXTENDS UTSTARCOM CONTRACT IN INDIA

BSNL EXTENDS UTSTARCOM CONTRACT IN INDIA;

NAMES UTSTARCOM AS TURNKEY TECHNOLOGY PROVIDER FOR PHASE TWO OF MULTIPLAY DEPLOYMENT

UTStarcom to Maintain Full Ownership of Network Design and Deployment in Region

Gurgaon, October 20, 2008 – UTStarcom, Inc. (Nasdaq: UTSI) announced today that Bharat Sanchar Nigam Ltd. (BSNL), India’s largest broadband and telecom services company, has extended its contract to build the second phase of a countrywide multiplay network launched in December 2007. UTStarcom deployed 1.3 million broadband subscriber lines during the first phase of BSNL’s multiplay network deployment and UTStarcom continues to remain India’s leading provider of Internet Protocol TV (IPTV) and broadband infrastructure in terms of scope of deployments and total commercially-deployed subscriber lines.

During this second phase, UTStarcom will deploy its industry-leading iAN-8000 multiservice access node (MSAN) solution in 962 cities throughout India to enable the addition of 1.1 million new broadband subscriber lines. The network expansion will help BSNL accelerate its existing broadband connections on subscriber lines by more than 30 times the current speed.

“We worked closely with BSNL to successfully complete phase one of this multiplay broadband network and we are pleased that they have chosen to extend their relationship with us for phase two of the deployment,” said Vijay Yadav, vice president and managing director of UTStarcom’s South Asia operations. “This contract extension re-affirms BSNL’s continued trust in UTStarcom’s technology and excellent service and support. We are confident that the continued expansion of this network with the phase two deployment will help BSNL retain and improve on their customer base and revenues.”

UTStarcom will continue to serve as the turnkey provider for phase two of the deployment, maintaining full responsibility for the network design and planning, deployment, service roll out, and maintenance of the network. With UTStarcom’s ADSL 2+ based broadband solutions, BSNL will be able to extend its offerings of broadband-based, triple-play services such as video-on-demand (VOD), video multicast, VPN services and high-speed Internet services to another 1.1 million broadband subscribers across the country while simultaneously gaining the benefits of network flexibility, scalability for innovation and the opportunity for rapid return on investment. This deployment also is expected to help India move closer to its goal of 20 million broadband subscribers by 2010.

The existing broadband connection on current networks uses the ‘Plain Old Telephone System’ (POTS) that delivers only 64 kilobits per second (kbps) of broadband speed. The new ADSL 2+ technology provided by UTStarcom will provide speeds beyond 8 mega bits per second (mbps), which is more than 30 times faster than the existing speed. This will allow BSNL’s customers the opportunity to enjoy value added services such as IPTV, VOD, voice over Internet Protocol (VoIP), VPN service, multicasting over VPN and others over the existing broadband network, in addition to basic Internet surfing capabilities.

UTStarcom also has deployed its NetRing(TM) 10000 optical transport solution in support of this multiplay service for the aggregation of DSL traffic in BSNL’s network. UTStarcom’s NetRing product suite provides service providers with a high level of network resilience and carrier-grade quality of service for subscribers to help ensure trouble-free delivery of real-time mission critical data and video applications.

About Bharat Sanchar Nigam Ltd. (BSNL)

BSNL, a Government of India owned corporation, is the incumbent and largest telecommunications services provider in India with a pan-India footprint but for Delhi and Mumbai. It has a network of over 74 million subscribers covering 5000 towns with over 35 million fixed line telephone connections. The corporation is an integrated telecommunications service provider with presence in the fixed line, cellular mobile, long distance and data segments with over 35 million fixed line, 38 million cellular mobile and 3.9 million Internet subscribers including 2.7 million broadband customers. To know more about BSNL, please log on to www.bsnl.co.in.

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 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 development operations in the United States, Canada, China, Korea and India. For more information about UTStarcom, visit the company’s Web site at www.utstar.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding UTStarcom’s deployment of its broadband products in India, including statements regarding the anticipated application and growth of broadband Internet users in India. These statements are forward-looking in nature and subject to risks and uncertainties that may cause actual results to differ materially. Factors that could cause actual results to differ materially from those contained in our forward-looking statements include: increased competition; economic issues in the identified geographic markets; possible delays in system deployment; termination of new contracts, partnerships or alliances; changes in anticipated number of subscribers and traffic; and changes in government regulation and licensing requirements. Please also refer to UTStarcom’s periodic reports that are filed from time to time with the Securities and Exchange Commission, including our latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. UTStarcom assumes no obligation to, and does not currently intend to, update these forward-looking statements.

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