GPON fiber access technology to deliver advanced broadband services to rural Kansas communities
PETALUMA, CA―June 13, 2011―Calix, Inc. (NYSE:CALX, news, filings) today announced that a trio of Kansas Broadband Stimulus award winners –H&B Communications, Inc. (H&B), JBN Telephone Company, Inc. (JBN), and Home Communications, Inc. (HCI) – have each selected Ethernet eXtensible Architecture (EXA) Powered Calix access platforms and the 700GE/GX family of optical network terminals (ONTs) to bring advanced broadband services to their rural subscribers. These networks will leverage either the Calix C7 Multiservice Access Platform (MSAP) or the E7 Ethernet Service Access Platform (ESAP) to deliver gigabit passive optical network (GPON) technology for their Fiber Forward initiatives, enabling broadband delivery speeds of up to 1 gigabit per second (Gbps) to residential and business customers, as well as community anchor institutions. In aggregate, these awards amount to more than $13.5 million in overall funds and consist of $8.3 million in grants, $3.6 million in loans, and $1.6 million in matching funds, which include plant engineering, materials, labor, and other costs, including access equipment. The selection of Calix as access supplier to these three awardees brings the total number of Broadband Stimulus projects in the state of Kansas whose access business has been awarded to Calix to seven projects, totaling approximately $129 million in overall funds.
H&B will use its $8.2 million award, which consists of a $4.6 million grant, a $2 million loan, and $1.6 million of private investment of which only a portion is access equipment, to provide advanced internet protocol television (IPTV), very high-speed data, and reliable voice services to approximately 2000 underserved rural subscribers in the areas surrounding Claflin and Ellinwood, Kansas. New E7-2 ESAPs with 10GE transport services will interconnect with a 10GE ring provided by existing C7 MSAPs to provide high-capacity connectivity across the entire H&B network.
"Advanced broadband services are the lifeline to the world for the rural communities that we serve," said Rob Koch, general manager at H&B. "With an advanced fiber access infrastructure, our subscribers can rely on our networks to not only meet their expanding local communications and entertainment needs, but to conduct business and interact with other parts of the world as well without any penalty for living in a rural area. We are excited for the opportunity that this Stimulus award provides, and confident that our long-time partner Calix is the right choice in bringing these crucial services to the citizens of Claflin and Ellinwood."
JBN will use its $3.3 million award, which consists of a $2.3 million grant and a $1 million loan, of which only a portion is access equipment, to build an advanced GPON infrastructure to six rural communities. C7 MSAPs deployed at each exchange will be connected via a 10 gigabit Ethernet (10GE) ring for high capacity broadband transport, and each premises will leverage the industry"s broadest range of advanced ONTs. JBN will also employCompass Flow Analyzer to monitor in real-time network traffic flow data and assist in proactive troubleshooting across its Calix network, legacy access equipment, as well as the network at sister-company Haviland Telephone Company.
"We understand that advanced broadband services are critical to the quality of life and economic development of the rural communities that we serve," said Mark Wade, president and general manager of JBN. "Our Stimulus award will allow us to bring one of the most advanced broadband infrastructures in the country to the residences and businesses of our seven western-most exchanges and our Barnes exchange. We look forward to working with Calix on this transformational initiative, and to bringing our rural subscribers an advanced broadband service experience that will be superior to that in most major cities."
HCI will use its $2 million award, which consists of a $1.4 million grant and a $601,464 loan, of which only a portion is access equipment, to provide radio frequency (RF) video overlay, ultra high-speed Internet access, and reliable voice services to rural subscribers throughout its Canton exchange. 10GE transport services will also be delivered by the C7 to provide high-capacity connectivity to the rest of the HCI network, and 721GE ONTs will provide a rich fiber access interface into each home.
"For years we have recognized the need for advanced broadband services in Canton, but we just could not make the business case work to justify the expense," said Carla Shearer, president and general manager at HCI. "The Broadband Stimulus Award has given us the opportunity to dramatically alter the fortunes of this rural community, bringing a world-class fiber access infrastructure to the region and new opportunities to its citizens. As a Calix customer for over five years, we know that we are working with the right partner to make this vision a reality."
"JBN, H&B, HCI, and a host of other service providers in Kansas were among the most aggressive in the country in pursuing Broadband Stimulus awards when they were first announced, and it has clearly paid off," said John Colvin, Calix vice president of field operations. "Calix is honored to be playing a key role in making Kansas one of the most Fiber Forward regions in the world through its involvement in numerous Stimulus projects across the state. The real winners, however, are the citizens of Kansas, who will be the beneficiaries of a state-wide broadband infrastructure that can deliver a world-class broadband experience."
With today's announcement, aggregate Calix vendor selections by Broadband Stimulus winners for "last mile" and "middle mile" awards have now reached 54 different projects representing approximately $958 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-Q for the fiscal quarter ended March 26, 2011, filed with the SEC on April 29, 2011, available at http://www.sec.gov.