UTStarcom Holdings Corp. (NASDAQ: UTSI) announced last week that it will supply EPON equipment to Ningxia Electric Power Co., for integrated electric distribution system and communication in a smart grid project.

Ningxia Electric started an accelerated program to upgrade its integrated electric distribution system and communication platform in 2010 as the Chinese government prioritized the development of smart grid networks across the country. By 2012, Ningxia Electric expects the integrated electric distribution system and communication platform to be operational in five cities within Ningxia province.

UTStarcom says its EPON gear helps electric companies such as Ningxia Electric Power not only improve its communication channels, but collects data and offer optical fiber to end users to meet various business needs.

"Our EPON solution enhances Ningxia Electric's distribution system and communication platform, integrating more functionality at a low cost of entry," asserted UTStarcom CEO Jack Lu. "We are encouraged by the new contract and are confident we will be able to capitalize on similar opportunities in the future as China's government continues to promote the digitalization and automation of the state grid network."

The company plans on booking this equipment-based sale in the third quarter of 2011.