Project to bring advanced broadband services to rural communities in three states
PETALUMA, CA—March 28, 2011—Calix, Inc. (NYSE:CALX, news, filings) today announced that Broadband Stimulus award winner Red River Telephone (Red River) has selected the Calix C7 Multiservice Access Platform (MSAP) and 700GE family of optical network terminals (ONTs) to bring advanced broadband services to rural communities across its service area in Minnesota, North Dakota, and South Dakota. This Fiber Forward initiative will utilize gigabit passive optical network (GPON) technology to enable ultra high-speed Internet services as well as voice services to subscribers in six counties. Significantly increasing the availability of health, education, and public safety services as well as the quality of life across the region, this initiative will bring some of the most advanced broadband services in North America to 1,272 residences, businesses, and anchor institutions. The $10 million Stimulus award consists of a $4.5 million grant, a $4.5 million loan, and $1 million in private investment, which includes plant engineering, materials, labor, and other costs, including access equipment.
"A project of this scope would take us 10 years or more to complete using just our own general funds, and we knew that the deserving citizens of our region couldn't wait that long," said Jeff Olson, general manager of Red River. "With this initiative, we will be making a strategic investment in the future of our member communities, stimulating economic development and allowing the residents and businesses of our region to keep pace with the demands of a global economy."
Matt Ihland, network operations manager at Red River adds, "We have chosen to partner with Calix for this important initiative, a company with a history of success in facilitating advanced fiber access deployments with hundreds of service providers across the country. We are excited to be moving forward, and in so doing bringing the deserving rural subscribers of our region the expanded opportunities that a world class fiber network infrastructure can deliver."
The Red River Broadband Stimulus initiative will place approximately 690 route miles of fiber optic cable in the proposed communities, covering an area of 918 square miles. Red River will be leveraging GPON and gigabit Ethernet (GE) technologies delivered via the Calix C7 MSAP, North America's leading MSAP, and 700GE family of ONTs, part of the industry's broadest portfolio of ONTs.
"By bringing advanced broadband connectivity to this rural region that encompasses three-states, Red River is bringing more than just a world class communications network to these communities – they are bringing hope and opportunity," said John Colvin, vice president of field operations at Calix. "Without Red River's tireless efforts in securing this award, it would have been, by their own estimates, over a decade before they could have afforded to bring this level of connectivity to the region. Instead, their subscribers will soon enjoy one of the nation's most advanced networks. Calix is proud to be a key enabler of this project, and congratulates the citizens of this region in moving Fiber Forward."
With today's announcement, aggregate Calix vendor selections by Broadband Stimulus winners for "last mile" and "middle mile" awards have now reached 36 different projects representing approximately $678 million in Stimulus-related grants, loans, and private investment for plant engineering, materials, labor, and other costs, including access equipment.
The Calix Unified Access portfolio will be on display today at the Minnesota Telecom Alliance (MTA) Annual Convention and Trade Show in Minneapolis, MN, and will be demonstrated during exposition hours on March 29 and 30 at Calix booths 35/36 and 51/52.
Calix (NYSE: CALX) is a global leader in access innovation. Its Unified Access portfolio of broadband communications access systems and software enable communications service providers worldwide to be the broadband provider of choice to their subscribers. For more information, visit the Calix website at www.calix.com.
This press release may contain forward-looking statements that are based upon management's current expectations and are inherently uncertain. Forward-looking statements are based upon information available to us as of the date of this release and we assume no obligation to revise or update any such forward-looking statement to reflect any event or circumstance after the date of this release, except as required by law. Actual results and the timing of events could differ materially from current expectations, based on risks and uncertainties affecting the Company's business. The reader is cautioned not to unduly rely on the forward-looking statements contained in this press release. Additional information on potential factors that could affect Calix's results and other risks and uncertainties are detailed in its report on Form 10-K for the fiscal year ended December 31, 2010, filed with the SEC on February 24, 2011, available at http://www.sec.gov.