Utility leverages GPON to bring advanced broadband services to Cook County, Minnesota
PETALUMA, CA—September 13, 2011—Calix, Inc. (NYSE:CALX, news, filings) today announced that Broadband Stimulus award winner Arrowhead Electric Cooperative, Inc. (Arrowhead Electric) has selected the EXA Powered Calix E7 Ethernet Service Access Platform (ESAP) to bring advanced broadband services to the underserved and unserved residences, businesses, and anchor institutions of Cook County in northeastern Minnesota. Arrowhead Electric will deploy gigabit passive optical network (GPON) technology across the Calix 700GE family of optical network terminals (ONTs) to the region, and plans to offer video, voice, and broadband speeds of up to 100 megabits per second (Mbps) to local subscribers. This award amounts to more than $16.7 million in awarded funds, of which only a portion is for access equipment. The Arrowhead Electric selection of the Calix Unified Access portfolio also marks the eighth Broadband Stimulus project for which Calix has been chosen in the state of Minnesota, totaling over $77 million in awarded funds.
"It had become increasingly clear to the residents and businesses of Cook County that our tourism industry could suffer if we couldn't offer adequate broadband widely," said Joe Buttweiler, director of member services at Arrowhead Electric. "With this Broadband Stimulus award, we are bringing one of the nation's most advanced communications infrastructures to our region. Broadband services have become a necessity for the well-being of our county, and we're excited to have the opportunity to work with Calix to bring a reliable, resilient, and future-ready fiber access network to the residents of Cook County."
Arrowhead Electric's Broadband Stimulus award consists of an $11.3 million grant, a $4.8 million loan, and $600,000 in matching funds, of which only a portion is for access equipment. In addition to Stimulus funding, Arrowhead Electric worked closely with Cook County to secure local sales tax grant funding in an amount up to $4 million dollars. Together, Arrowhead Electric and Cook County have worked closely to bring this project to fruition, and the fruits of their labor will result in a world-class broadband infrastructure that is expected to benefit approximately 11,363 people, 138 businesses, and 63 community institutions. Even though the project is just now breaking ground, over 1,100 households and businesses have already pre-registered to join the priority waiting list for the service. The voice, video, and ultra high-speed data services that will be offered through this project to subscribers in Cook County will be delivered via the Calix E7 ESAP and 700GE family of ONTs.
"The combination of Arrowhead Electric and Cook County has emerged as a premier example of what a strong public/private partnership can achieve," said John Colvin, senior vice president of North American field sales and marketing at Calix. "Each party brought a unique set of skills and resources to the table, and the result was an awarded Stimulus project that we expect will be truly transformative to the region. We congratulate Arrowhead Electric and the citizens and businesses of Cook County in succeeding in bringing together the resources necessary to deliver the potential for powerful quality of life improvements and economic stimulus to northeastern Minnesota."
With today's announcement, aggregate Calix vendor selections by Broadband Stimulus winners for "last mile" and "middle mile" awards have now reached 70 different projects representing approximately $1.3 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 June 25, 2011, filed with the SEC on July 22, 2011, available at http://www.sec.gov.