PETALUMA, CA—February 28, 2012—Calix, Inc. (NYSE: CALX) today announced that two Missouri electric cooperatives, Co-Mo Electric Cooperative (Co-Mo) of Tipton, Missouri and Broadband Stimulus winner United Electric Cooperative (United) of Maryville, Missouri, have selected the Calix Unified Access portfolio to bring fiber-to-the-premises (FTTP) to over 27,000 homes and businesses in the region. Both cooperatives are industry-leading examples of electric cooperatives expanding their traditional business model to include advanced broadband services for their members and throughout their respective communities.
(Editorial Note: To view video case studies of both Co-Mo and United, visit the Calix Power of Broadband microsite.)
Co-Mo and United are both deploying the EXA Powered Calix E7-2 Ethernet Service Access Platform (ESAP) and 700GE family of optical network terminals (ONTs) and utilizing gigabit passive optical networking (GPON) technology, allowing them to each implement one of the nation's most advanced broadband network infrastructures. Co-Mo and United will offer high-speed data and voice services over their fiber access networks that are capable of delivering up to 1 gigabit per second (1 Gbps) to any subscriber – far faster than the broadband speeds available to most subscribers in America's largest cities. Committed to furthering economic development in their respective communities, both cooperatives will also be looking towards telemedicine and distance learning applications in the future for local schools and health care institutions.
The North American leader in fiber access deployments, Calix is leveraging its vast fiber access experience to help electric cooperatives, such as Co-Mo, United, and others like Arrowhead Electric in Minnesota, as they bring broadband services and new opportunities for economic development to their broadband-starved communities. Because their customers have been overlooked by traditional broadband service providers in their regions, these companies have applied their cooperative spirit and taken matters into their own hands to leverage their current networks and operational infrastructures to become advanced broadband service providers. A natural extension of grid modernization initiatives underway at many electric cooperatives, existing utility poles and experienced outside plant staff can be readily leveraged to deliver broadband services over fiber. Ultimately, grid modernization and communications services efforts are extremely complementary, leading to a smarter grid and smarter homes.
After determining that satellite and wireless broadband services did not meet the needs of their members and being turned down for Broadband Stimulus funding, Co-Mo embarked on a self-funded fiber access project in 2011. The cooperative began by reaching out to its members, going door-to-door to sign up early registrants for its Co-Mo Connect service. Within a few months, Co-Mo had already exceeded expectations for early registrants and, within the first year of marketing the service, signed up 30 percent of all available member premises in two pilot areas. Now near completion of the two pilot network builds, Co-Mo hopes to continue to expand across its serving area throughout 2012, offering residential broadband packages with speeds up to 35 megabits per second (Mbps) and more advanced packages for business customers.
"In rural Missouri, we must find every opportunity to keep our community thriving and competitive with urban areas," said Ken Johnson, general manager and CEO at Co-Mo. "With this fiber access network, every member of our cooperative will benefit, from recent graduates who can now work from home, to businesses that can take advantage of tailored, high-bandwidth packages, and schools and hospitals that can collaborate with other institutions. Calix has been a true partner in this build to date, with us every step of the way as we revitalize this rural community, much the way we did by turning on the lights with electricity in the 1940s."
Just north of Co-Mo, United Electric is now underway with their fiber project, which is funded by a $21.2 million Broadband Initiative Program (BIP) award. With over 1350 miles of fiber to deploy, United plans to bring advanced broadband services to more than 4200 residences and 58 anchor institutions. Along with high-speed data and voice services, United will also offer video packages to subscribers. With an infrastructure capable of offering broadband services up to 1 Gigabit per second (Gbps), United's network can support an array of additional smart home and video based services in the future.
"At United, we serve a very large area with a low subscriber density, but within our member base we found a huge need for true broadband services," said Gene Dorrel, general manager at United. "Prior to our fiber project, 79 percent of our members had computers, but lacked adequate broadband. With our commitment to our members and history of being dedicated to our community, it was clear that United could be a vehicle for change. By partnering with Calix and their great track record in rural markets, we are confident we will improve the lives and businesses of our members."
"With over 700 customers now utilizing the Unified Access portfolio to bring advanced broadband services over fiber to their communities, Calix brings industry-leading expertise and insight to this rapidly emerging market," said John Colvin, Calix senior vice president of North America sales and marketing. "We look forward to continued work with innovative electric cooperatives as they leverage their existing networks and operations to accelerate economic development within their communities and laying the foundation for new potential revenue streams and improved efficiency."
Calix will highlight the Co-Mo and United projects at Booth #414 at the National Rural Electric Association's (NRECA's) TechAdvantage 2012 Conference & Expo at the San Diego Convention Center, March 6-9. Representatives of Co-Mo and United will be on-hand to answer questions about their respective projects. Calix partner Pulse Broadband, who works with both Co-Mo and United, will also be at TechAdvantage in Booth #506.
With the addition of United Electric, aggregate Calix vendor selections by Broadband Stimulus winners for "last mile" and "middle mile" awards have now reached 88 different projects representing nearly $1.7 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 transform their networks and 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, 2011, filed with the SEC on February 24, 2012, available at http://www.sec.gov.