AI and BEAD: The Twin Engines Driving the Next Era of Broadband Growth

Artificial intelligence is reshaping every industry—and broadband is no exception. For Broadband Service Providers (BSPs), AI is no longer a future consideration; it’s a strategic imperative. As networks grow more complex and subscriber expectations rise, BSPs that embrace AI will unlock powerful new capabilities to streamline operations, personalize experiences, and accelerate growth. The result? Greater efficiency, stronger market positioning, and ultimately, higher returns for investors.
 

As Calix launches the 3rd generation of our broadband platform, we’re entering a new era defined by AI-powered transformation. This next-gen platform empowers BSPs with real-time diagnostics, proactive support automation, intelligent service delivery, and smart community integrations. It’s designed not just to reduce costs and improve operational efficiency, but to help BSPs differentiate in increasingly competitive markets and unlock new, recurring revenue streams. For investors, this means expanded margins, stronger ROI, and increased predictability across your portfolio.
 

To be clear: AI is not a capability we are just bolting on. We have spent the past two years investing tens of millions in a strategic, integrated, and holistic approach to evolve our platform for one purpose: to maximize the value of AI so BSPs simplify, innovate, and grow your broadband business.
 

As we roll out these capabilities, we’re actively partnering with investors to ensure their BSPs are first to benefit. If you're interested in learning how AI on the Calix platform can accelerate performance across your portfolio—or how to identify which BSPs are best positioned to capitalize—connect with our team. We’d be excited to share our platform roadmap, the AI innovations coming next, and the strategic opportunities ahead. We are ready to share more about these exciting developments and encourage you to put these two events on your calendar:

1. Our upcoming webinar: "Leaving the Industrial Era: Artificial Intelligence and the 3rd Generation Calix Broadband" on August 6, 2025. We will share our vision for the AI-enabled future with Calix’s 3rd generation platform.
   
   
2. The ConneXions 2025 Leadership Track for GMs/CEOs: “New Game, New Rules” on October 18-21. AI will dominate the dialogue, with a specific focus on transforming your business to reduce churn, grow ARPU, and win new subscribers with AI and Calix’s 3rd generation broadband platform.

Seven Game-Changing BEAD Reforms Every Broadband Investor Should Know

Just as AI is redefining how BSPs operate and compete, recent federal policy updates are reshaping how broadband infrastructure will be funded and deployed. The NTIA recently issued drastic changes to the BEAD program that will significantly impact how broadband infrastructure is funded and distributed to BSPs. These seven updates are designed to accelerate deployment, reduce regulatory friction, and award the lowest cost “priority broadband project”.

1. Regulatory Streamlining: NTIA has eliminated several non-statutory requirements, including labor practice mandates, open access provisions, and affordability pricing controls. This reduces compliance burdens and opens the door for more private investment and vertically integrated builds.
   
   
2. Technology Neutrality: The previous fiber preference has been removed. All technologies (i.e. fiber, fixed wireless, cable, and LEO satellite) are now eligible if they meet performance standards. However, states can still prioritize fiber by emphasizing reliability, scalability, and futureproofing.
   
   
3. New Application Round: All states must conduct a new 90-day “Benefit of the Bargain” application round, even if they’ve already selected subgrantees. This reopens the process to all eligible locations and requires rescinding preliminary awards. Final Proposals must be resubmitted within this window by 09/04/2025.
   
   
4. Updated Scoring Rubric: The new rubric prioritizes cost-efficiency (BEAD outlay per location), speed to deployment, and technical capabilities. Criteria related to labor, affordability, and local coordination have been removed.
   
   
5. Location List Revisions: States must update their eligible BSL lists using the latest FCC data and remove areas already served or covered by enforceable commitments and/or Unlicensed Fixed Wireless. This aims to prevent overbuilding and ensure funding is targeted.
   
   
6. Permitting Acceleration: NTIA is introducing a new permitting tool (ESAPTT) to streamline environmental approvals, targeting a two-week turnaround for 90% of projects.
   
   
7. Non-Deployment Funding Paused: All previously approved non-deployment activities (e.g., workforce development) are rescinded. New guidance is pending.

If you would like to read a complete description of the changes made by the NTIA, see their notice.
 

One of the most impactful shifts in the updated BEAD guidance is the emphasis on “minimal BEAD outlay” as a scoring priority. Simply put, the more capital a BSP contributes, the lower the BEAD funding required—and the stronger the proposal. A higher match not only improves your score, it also enables faster deployment, another key evaluation factor.

As both technology and policy landscapes continue to evolve, Calix’s platform ensures that BSPs are equipped with the appropriate technology to thrive and elevate their positioning and profitability in the broadband industry.
 

Ready to maximize margins and minimize risk? Let’s discuss how Calix’s AI-powered platform and BEAD expertise can drive predictable, scalable growth for your broadband investments.