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Telecom agreement signed in Beijing

13 June 2011

Chief Minister, Senator Terry Le Sueur, attended the signing of a Memorandum of Understanding (MoU) today (13 June) between international Beijing-based telecommunications company UTStarcom (UTSI) and Jersey Telecom (JT).

The signing, which took place in Beijing, is the latest development in a business relationship that has existed between the two companies since 2008. UTSI, which specialises in providing networking products for telecommunications, has been working together with JT for the past three years, developing the next generation core telecoms network that has been installed in the Island. The signing of a MoU will enable them to develop their partnership.

UTSI and JT intend to work together in Jersey on the research, testing and development of new telecoms products and services for global markets. The MoU will make the most of JT's installation of fibre-optic broadband, which in turn provides the network speed, resilience and capacity necessary for UTSI to use Jersey as its European hub.

Senator Le Sueur commented: “It is encouraging to already see such concrete results from our ties with China. Companies like UTStarcom will bring significant new investment to Jersey while also raising our profile as a well-established and well-regulated base for foreign businesses to conduct their operations in Europe. This is a great example of the benefits of meeting face to face with key representatives in Chinese government and business. There is a real opportunity for Jersey to engage with the world’s second largest economy and to bring the fruits of that engagement back with us to Jersey.”

JT's Chief Operations and Technical Officer, Dave Newbold, added: “I am delighted to be signing this memorandum on behalf of JT. It marks a significant milestone both for JT and for the Island as a whole; it is the start of a very exciting time for the future of our economic development. JT and UTSI have been steadily building a powerful relationship since 2008, and this agreement paves the way for UTSI to locate their entire European research, development and testing functions in Jersey. This memorandum pays tribute to the strength of the relationship, the belief in our Gigabit Isles strategy and the attractiveness of Jersey as a location to do business. We'll be working with UTSI to develop cutting edge products and services, which will be of real benefit to all our customers, both on a local and global basis."

James Lu, Senior VP Sales and Services for UTSI, added: "UTStarcom has considered JT to be an important customer from the beginning of 2008 and has since built a strong relationship. With the tremendous ambition JT has demonstrated and outstanding growth potential, UTSI hopes to establish a stronger and deeper long-term mutually beneficial relationship. Given the Gigabit Isles strategy and the attractiveness of Jersey as a business location, we believe that building a joint research and development and testing facility in Jersey will best suit our commercial needs."

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