Project to bring advanced broadband services to eight rural Minnesota communities
PETALUMA, CA—March 30, 2011—Calix, Inc. (NYSE:CALX, news, filings) today announced that Broadband Stimulus award winner Southwest Minnesota Broadband Services (SMBS) has selected the EXA Powered Calix E7 Ethernet Service Access Platform (ESAP) and 700GE family of optical network terminals (ONTs) to bring advanced broadband services to eight rural communities across southwest Minnesota. This "Fiber Forward" initiative, modeled after the highly successful fiber to the premises (FTTP) network serving the adjacent community of Windom, Minnesota, will leverage the experience and many key components of the Windomnet network infrastructure, enabling ultra high-speed Internet services of up to a full gigabit per second (Gbps), as well as voice and advanced cable television services. Significantly increasing the availability of health, education, and public safety services as well as improving the quality of life across the region, this initiative will touch over 3,300 residences, and nearly 350 businesses and anchor institutions. The $12.7 million Stimulus award consists of a $6.35 million grant and a $6.35 million loan, which includes plant engineering, materials, labor, and other costs, including access equipment.
"The cities of SMBS have a long history of proactive infrastructure investment to keep pace with their more urban counterparts, and we all recognize that broadband access will the key infrastructure that keeps us globally competitive in the twenty-first century," said Keith Stubbe, SMBS chairman and mayor of member community Round Lake. "We didn't have to look far to find a world-class example of the network we strove to emulate: the fiber access network that Dan Olsen and his team at Windomnet have built with their good partner Calix. With the advice and expertise of Dan Olsen at Windomnet, John Schultz at U-reka Broadband, and the expertise of Calix, we believe we have the right resources in place to bring the deserving residents and businesses of our eight communities the network they deserve, and by implementing one of the most advanced networks in the nation, position southwest Minnesota to be globally competitive."
SMBS is a consortium of cities and will own and operate the fiber access infrastructure and broadband network serving the eight rural Minnesota communities of Jackson, Lakefield, Round Lake, Bingham Lake, Brewster, Wilder, Heron Lake, and Okabena. The network will consist of a 125-mile fiber ring that will connect these communities and serve over 7300 residents. SMBS will be leveraging gigabit passive optical network (GPON), Active Ethernet (AE), and 10 gigabit Ethernet (10GE) technologies delivered via the Calix E7 ESAP and the 700GE family of ONTs – North America's leading broadband systems for meeting the advanced service requirements of Broadband Stimulus award winners.
"The eight rural communities that constitute the SMBS service area personify the spirit of self-reliance that Minnesota is known for," said John Colvin, vice president of field operations at Calix. "By joining together and implementing one of the nation's most advanced fiber access infrastructures, they are taking control of their own futures and stimulating their own economic development. We congratulate the citizens of southwestern Minnesota for winning an award that has the potential to transform the region into one of the most connected in the nation, and we look forward to helping the communities served by SMBS reap the full benefits of a world-class fiber access network infrastructure."
With today's announcement, aggregate Calix vendor selections by Broadband Stimulus winners for "last mile" and "middle mile" awards have now reached 37 different projects representing approximately $690 million in Stimulus-related grants, loans, and private investment for plant engineering, materials, labor, and other costs, including access equipment.
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.