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April 11, 2012 PDF   HTML

New Calix Report Finds Video Streaming Drives Rural Internet Traffic

Analysis of U.S. service provider network traffic sheds light on rural America's broadband usage patterns

INDIANAPOLIS, IN—April 11, 2012—Calix, Inc. (NYSE: CALX) today announced the availability of its first-ever Calix U.S. Rural Broadband Report. Based on analysis of data aggregated from 45 U.S. communications service providers, this report provides new insights into Internet application and usage patterns among rural Americans. Report data was drawn from actual Internet traffic monitored in U.S. service provider networks from the fourth quarter (October through December) of 2011. Calix will follow up with a new version of the U.S. Rural Broadband Report every quarter.

(To download the report, click here.)

Video streaming dominated downstream traffic; business services generated most upstream traffic

As service providers prepare for an all-video world, it is not surprising to see video streaming was the dominant broadband-enabled application among eight categorized applications. Video streaming accounted for 67 percent of down stream Internet traffic and 13 percent of upstream traffic in the studied networks. Large content distribution networks (CDNs) such as Level3, Limelight, and Akamai -- which carry video content from sites like Netflix and YouTube -- accounted for 80 percent of all streamed video traffic. In terms of upstream traffic, business services generated the most, accounting for 53 percent of all upstream traffic.

Additional findings from the inaugural Q4 2011 report include:

  • Service providers that offer Internet services exclusively over fiber access networks saw subscribers generate over 2.67 times more traffic than service providers that offered Internet services over copper-based networks.
  • The top five percent of subscribers in the rural U.S. networks studied used more than 100 GB of downstream traffic a month, and accounted for approximately 50 percent of Internet traffic.
  • Application use varied across different regions of the U.S. in Q4:
    • The West: Streamed video more heavily than other regions.
    • The Southeast: Played the most online video games.
    • The Northeast: Shopped online more heavily than other regions.
    • The Midwest: Used business-oriented services in the home most frequently.

"This level of insight into the bandwidth drivers of rural U.S. broadband networks provides both Calix and our service provider customers a powerful tool for network planning and transformation projects," said Miguel Alonso, Calix vice president of software products. "As was expected, video streaming emerged as the biggest contributor to broadband Internet traffic across our customers' networks, a trend that we expect will continue to grow in future quarters. With this real-world data available to our customers through Compass Flow Analyzer, these service providers can truly understand how their subscribers are using their networks, and use this information to manage current and future demand, lay the foundations for usage-based billing, and build better behavior-based service packages that fit the real usage patterns of broadband subscribers."

The Q4 2011 Calix U.S. Rural Broadband Report is the first in a series of reports planned to be issued quarterly. The data used in the report was derived from Compass Flow Analyzer software installed in Calix customer networks across the United States. Independent of the access media and broadband technology deployed, Flow Analyzer provides a unique subscriber-centric view of the network and its traffic. Utilizing a software-as-a-service model, Flow Analyzer gives service providers an in-depth look into both the overall traffic volumes and the general types of applications (for example, video streaming, Internet browsing, etc.) that are riding over their network infrastructure, allowing them to more effectively and efficiently plan, manage, and troubleshoot their networks without intruding on the privacy of their subscribers. In addition, Flow Analyzer allows service providers to find new opportunities to expand revenue, increase customer satisfaction, optimize network resources, and reduce the cost of delivering services to subscribers.

Calix will have a live demonstration of Flow Analyzer running in its booth at the IP Possibilities Conference & Expo this week in Indianapolis, Indiana. To see Flow Analyzer in action, along with the rest of the Calix Unified Access portfolio, visit booths 300-303 during show hours from April 10-12, 2012.

About Calix

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.

Press Inquiries:
Neila Matheny
707-766-3512
neila.matheny@calix.com

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