74 Percent of Federally Funded BSPs Trust Calix for Compliance Reporting, Surpassing 2 Billion Tests Performed in Just 3 Years
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Insights
The announcement by Calix, Inc. regarding the usage of its Broadband Platform by federally funded broadband service providers (BSPs) for FCC performance testing presents significant implications for the telecommunications industry. The fact that 74 percent of these BSPs are utilizing the Calix Cloud capabilities underscores a growing reliance on cloud-based solutions for regulatory compliance. This adoption reflects a broader trend in the telecommunications sector towards cloud services, which offer scalability, efficiency and the ability to manage large volumes of data, such as the 2 billion FCC performance tests mentioned.
Calix's partnership with Ookla and the integration of performance insights into its platform can be seen as a strategic move to embed itself deeply within the operational frameworks of BSPs. This level of integration can lead to increased customer stickiness and potential barriers to entry for competitors. Moreover, the ability to streamline FCC compliance reporting through automated testing and reporting can reduce operational burdens on BSPs, allowing them to focus on network growth and service improvement. However, the concentration of market share in Calix's hands could raise questions about market competitiveness and the risks associated with dependency on a single vendor's platform.
From a financial perspective, Calix's announcement may be viewed positively by investors and market participants. The company's role in enabling BSPs to meet federal performance testing requirements could translate to a steady revenue stream, especially given the ongoing federal funding programs such as BEAD and RDOF. The exclusive partnership with Ready.net could further enhance Calix's market position, potentially leading to increased market share and higher revenue growth. This strategic positioning, combined with the company's commitment to domestic manufacturing in compliance with the Build America, Buy America (BABA) requirements, may also align with current political and economic initiatives to bolster domestic infrastructure and could be a factor in securing future federal contracts.
However, investors should be mindful of the risks associated with the regulatory environment. Changes in FCC requirements or shifts in federal funding priorities could impact the demand for Calix's services. Additionally, the reliance on public funding programs introduces an element of uncertainty, as these programs are subject to political influence and budgetary constraints. As such, it is important to monitor the policy landscape and Calix's adaptability to any changes.
Calix's announcement holds strategic importance in light of the upcoming critical deadlines for the BEAD program. The company's ability to simplify access to public funding programs for BSPs could lead to an increased adoption of the Calix Broadband Platform, especially in rural areas where funding and compliance with FCC standards are important for network development and maintenance. The partnership with Ready.net could provide a competitive edge, as it may enhance the service offerings to BSPs, potentially increasing customer satisfaction and loyalty.
It is also noteworthy that Calix's solutions are designed to address common challenges faced by BSPs, such as the need to defer tests during high background traffic to prevent network bottlenecks. This level of detail in service provision reflects an understanding of the operational challenges in the industry and could position Calix as a thought leader in broadband performance testing. The long-term benefits for BSPs include not only compliance but also the ability to identify and rectify network performance issues, which can lead to improved customer experiences and potentially reduce churn rates.
Calix continues to dramatically simplify access to public funding programs ahead of critical deadlines for BEAD, announcing 74 percent of all federally funded
Calix FCC Performance Testing and the Broadband Performance Testing Service on the Calix Platform have enabled hundreds of BSPs to successfully meet FCC requirements. In 2019, Calix partnered with Ookla—a global leader in broadband network intelligence and testing applications—and integrated scalable performance insights into the Calix Platform. By introducing performance testing prior to 2020, Calix customers were prepared for the windfall of federal funding and requirements to follow from sources like the Connect America Fund (CAF).
Similarly, when performance requirements are announced for the Broadband Equity, Access, and Deployment (BEAD) program and Rural Digital Opportunity Fund (RDOF) in the coming years, BSPs that have included performance testing throughout implementation will help prevent future missteps and maintain their funding.
With billions of dollars from once-in-a-generation funding opportunities on the line, the Calix Platform has enabled funded BSPs to easily report network performance. Each test conducted on the platform is designed to measure speed and latency or to determine whether the test should be deferred. When background traffic is too high, tests are automatically deferred to prevent network bottlenecks. However, even skipped tests must be reported. Calix simplifies this cumbersome and often inefficient process of performance testing, allowing BSPs to easily streamline required testing at various endpoints and deliver findings in an FCC-complaint report.
Providing BSPs with an even greater advantage during the funding process, Calix recently announced an exclusive partnership with Ready.net. The partnership will further enable BSPs to secure their fair share of funding while continuing to grow their networks and drive incredible experiences for their subscribers and communities.
“Calix Cloud takes the complex and often time-consuming process of performance testing and greatly simplifies how you report and submit to the FCC,” said Scott Nyman, general manager and chief executive officer of Cirrinity. “During testing, problem areas affecting performance are easily identified, allowing my team to cut through the noise of hundreds of thousands of test rows and immediately improve results. At every point in our journey, Calix has ensured FCC performance obligations are met, helping us maintain our funding allowance and delivering significant value to the communities we serve in northeastern Wisconsin.”
Calix is also fully committed to meeting and exceeding industry standards that drive broadband innovation. The company fully complies with and leads in global industry standards. Additionally, Calix remains committed to meeting the federal Build America, Buy America (BABA) requirements for BEAD and other federal funding programs by manufacturing critical broadband hardware systems domestically. This is why BSPs depend on Calix to deliver efficient, reliable solutions that help maintain the integrity of their networks and evaluate performance with precision.
“There is a reason nearly three-quarters of all funded BSPs rely on the Calix Platform to win and maintain their funding,” said John Durocher, chief customer officer at Calix. “In just three years, Calix customers have conducted 2 billion FCC performance tests, showcasing the reliable, scalable value BSPs of any size are leveraging to ace funding requirements. Innovations to the industry’s only end-to-end platform have made testing effortless for our customers, especially those who lack the resources to dedicate time to demanding quarterly mandates when they need to focus on growing their network. With billions at stake in funding, Calix ensures BSPs can navigate and dramatically simplify a complex process to continue delivering incredible value to their communities.”
Learn more about Calix FCC Performance Testing by scheduling a consultation today.
About Calix
Calix, Inc. (NYSE: CALX)— Calix is a cloud and appliance-based platform and managed services company. Broadband service providers leverage the Calix broadband platform, cloud, and managed services to simplify operations, engagement, and service, innovate for their consumer, business, and municipal subscribers, and grow their business and the communities they serve.
Our end-to-end platform and managed services democratize the use of data enabling our customers of any size to operate efficiently, acquire subscribers, and deliver exceptional experiences. Calix is dedicated to driving continuous improvement in partnership with our growing ecosystem to support the transformation of our customers and their communities.
This press release contains 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 Calix’s business. The reader is cautioned not to 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 quarterly reports on Form 10-Q and Annual Report on Form 10-K filed with the SEC and available at www.sec.gov.
Calix and the Calix logo are trademarks or registered trademarks of Calix and/or its affiliates in the
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Press Inquiries:
Zach Burger
669-369-1991
zach.burger@calix.com
Investor Inquiries:
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investorrelations@calix.com
Source: Calix, Inc.
FAQ
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