GPON to bring advanced broadband services to two rural eastern Kentucky counties
PETALUMA, CA―July 12, 2011―Calix, Inc. (NYSE:CALX, news, filings) today announced that Broadband Stimulus award winner Peoples Rural Telephone Cooperative (PRTC) has selected the Calix B6 Ethernet Service Access Nodes (ESANs), along with the 2000 family of optical network terminals (ONTs), to bring fiber-based broadband services to Jackson and Owsley counties in Kentucky. PRTC will move Fiber Forward by deploying gigabit passive optical network (GPON) technology to deliver advanced services over fiber, including expanded digital television services, extremely fast data services, and high quality voice over Internet protocol (VOIP) services to more than 3,500 residences and businesses. The PRTC Broadband Stimulus award totals $25.5 million in overall funds, including a $17.9 million grant and a $7.6 million loan, which includes plant engineering, materials, labor, and other costs, including access equipment. With this award, Calix has now been selected access vendor to three Broadband Stimulus projects in Kentucky, amounting to over $227 million in awarded funds, of which only a portion is access equipment.
"The rural geography and remoteness of eastern Kentucky has historically hindered the economic development of the region, but we view our broadband expansion as a new avenue around this roadblock," said Keith Gabbard, general manager and CEO at PRTC. "This Broadband Stimulus initiative will bring one of the nation's most advanced fiber access infrastructures to the homes and businesses of Jackson and Owsley Counties, providing access to services that we believe will drive economic growth and new opportunity throughout these impoverished rural areas. Calix was a clear choice as a key partner for us in this initiative, providing the necessary real-world experience and technology leadership to bring this important project to reality."
PRTC has already completed phase 1 of this project in Owsley County and is currently deploying to additional homes and businesses in Jackson County. GPON technology will be deployed across the B6 ESAN and Calix 2444 ONTs, bringing radio frequency (RF) video overlay, advanced broadband services and Media Gateway Control Protocol (MGCP) VOIP to subscribers.
"We expect PRTC's ambitious fiber access initiative will be transformative to this region an investment in the future of these communities that will serve them for many, many years," said John Colvin, vice president of field operations at Calix. "We congratulate PRTC on their Stimulus award, and are excited to be working with them to bring a world-class communications infrastructure, and the commensurate opportunity that it will provide, to the businesses and residents of rural Kentucky."
With today's announcement, aggregate Calix vendor selections by Broadband Stimulus winners for "last mile" and "middle mile" awards have now reached 58 different projects representing approximately $1.1 billion 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.