The network would provide a fresh revenue source for UTStarcom through video advertisement in the province.
Best Tone is a wholly subsidiary of China Telecom (0728.HK; CHA. NYEX), one of the largest fixed telecom operators in China.
Under the agreement, Best Tone would cooperate with UTStarcom to build and operate a Chinese-specific, building-based video information network and distribution system. As much as 3,500 iPAD1000 terminals are scheduled to go live in office buildings, government facilities, supermarkets, hotels, hospitals and schools in Hunan Province this year.
The iPAD1000 technology could integrate UTStarcom's RollingStream IPTV set-top boxes, ADSL modem, Wi-Fi adapter, IPTV network connection and video monitor into a single terminal station.
The network is the second large-scale interactive advertising system that UTStarcom's end-to-end RollingStream Internet Protocol TV (IPTV) platform will show presence in China, and it is expected to support 10,000 terminals in the region upon completion of the project.
UTStarcom earlier announced the launch of the first interactive advertising network with Guangxi Telecom Company Limited, also a wholly-owned subsidiary of China Telecom, in July 2008.

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