Calix Announces BEAD-Compliant Broadband Platform Offerings So Any Service Provider Can Deliver Differentiated Subscriber Experiences to Rural America

Rhea-AI Summary

Calix (NYSE: CALX) has announced a comprehensive range of BEAD-compliant broadband solutions designed to help broadband service providers (BSPs) secure a portion of the $42.45 billion in federal funding available for broadband expansion. Over the past five years, Calix's Funding Consult Program has facilitated over 500 consultations, securing $2 billion in federal funding for BSPs and conducting over 2 billion FCC performance tests. The new offerings aim to provide scalable, resilient, and secure network solutions with low operating expenses, leveraging the Intelligent Access™, Unlimited Subscriber, and Calix Cloud® platforms. By partnering with providers, Calix aims to transform BSPs from speed-focused entities into experience providers, supporting their growth and community value. Calix also collaborates with U.S.-based manufacturers to meet Build America, Buy America (BABA) requirements, ensuring compliance with federal guidelines.

Positive

• Calix's BEAD-compliant broadband solutions target a share of $42.45 billion in federal funding.
• The Funding Consult Program has secured $2 billion in federal funding for BSPs.
• Calix has facilitated over 2 billion FCC performance tests.
• The new solutions aim to provide scalable, resilient, and secure networks at low operating expenses.
• Calix collaborates with U.S.-based manufacturers, meeting BABA requirements.

Negative

• None.

Insights

Market Research Analyst

Calix's announcement of its BEAD-compliant broadband platform offerings is a significant development for rural broadband service providers (BSPs) aiming to leverage the upcoming $42.45 billion in federal funding. This news is particularly relevant for rural areas, where infrastructure development has lagged due to high costs and logistical challenges. The BEAD program's emphasis on compliance and performance validation creates a vital opportunity for BSPs to upgrade their networks, ensuring they meet federal requirements.

From a market perspective, the successful implementation of BEAD-compliant systems could lead to increased adoption of Calix's offerings, enhancing its market position among rural BSPs. Moreover, the diverse range of flexible and scalable systems such as AXOS® E9-2, E7-2 and E3-2 will ensure that providers can cater to different deployment scenarios, from remote areas to suburban sprawl. The additional support through Calix's Funding Consult Program and partnerships like Ready.net further strengthens the proposition by simplifying the complex funding and compliance processes, making it more accessible for smaller and less experienced BSPs.

In the short term, this could result in an immediate boost in revenues for Calix as providers look to quickly secure funding and upgrade their infrastructure. In the long term, the successful deployment and optimization of these networks can lead to sustained growth driven by improved service quality, customer satisfaction and the ability to offer new services.

Financial Analyst

From a financial standpoint, Calix's introduction of BEAD-compliant broadband offerings represents a strategic move to capture a significant portion of the federal funding allocated for broadband infrastructure. Given that the company has already helped providers secure $2 billion in funding through its consult program, the potential revenue growth from this initiative is substantial. With nearly 74% of all federally funded BSPs already engaged with Calix, the company's existing customer relationships position it well to capitalize on the additional funding.

However, it is critical to examine the cost implications of scaling these solutions. While the promise of lower operating expenses (OPEX) through scalable, resilient and secure networks is appealing, the initial capital expenditure (CAPEX) for deployment may be significant. Investors should closely monitor Calix's financial reports for details on CAPEX, OPEX and the overall impact on profit margins. Additionally, the compliance with Build America, Buy America (BABA) requirements may introduce supply chain complexities, potentially affecting timelines and cost structures.

In the short term, the announcement is likely to positively impact Calix's stock as the market anticipates revenue growth from new deployments. Long-term, sustained profitability will depend on the successful execution of these projects and the ability to manage costs effectively.

Building on the success of a 5-year Funding Consult Program that, in partnership with dozens of expert partners like Ready.net, has led 500+ consultations to help broadband providers secure $2 billion in funding, Calix announces BEAD-compliant offerings for its business-transforming platform

SAN JOSE, Calif.--(BUSINESS WIRE)-- Today, Calix, Inc. (NYSE: CALX) announces its portfolio of fully compliant Broadband Equity, Access, and Deployment (BEAD) solutions. This extensive portfolio of compliant systems on the Calix Broadband Platform ensures broadband service providers (BSPs) can act quickly to retain their share of the upcoming $42.45 billion in federal funding. The Calix Funding Consult Program helps broadband providers secure and maintain funding allocations by simplifying the application and reporting processes required by federal and state funding programs. Calix has worked with nearly 74 percent of all federally funded BSPs in the United States to help ensure compliance. Since its inception five years ago, the Calix Funding Consult Program—which incorporates over two dozen partnerships with experts like Ready.net—has helped BSPs secure more than $2 billion in federal funding and conduct over 2 billion FCC performance tests.

The BEAD program represents the largest single funding initiative in U.S. broadband history. The cloud-and-software-enabled Calix Platform and BEAD-compliant systems enable BSPs to build scalable, resilient, and secure networks at the lowest possible operating expenses (OPEX) that meet BEAD’s critical testing and performance validation requirements. The Calix Platform—including Intelligent Access™, Unlimited Subscriber, and Calix Cloud®—fully equips BSPs to deliver differentiated broadband experiences to residential, community, and business markets. With Calix innovation and support throughout the funding journey, BSPs can easily transform from speed into experience providers, meet evolving subscriber needs, and invest to grow their communities.

For BSPs that want to secure funding to grow value for themselves and their communities, Calix enables them with:

• The ability to mix and match BEAD-compliant systems to meet various network deployment requirements. The award-winning AXOS® E9-2 (controlled environments), E7-2 (remote cabinets), and E3-2 (pole mounted) Intelligent Access systems are flexible and scalable so BSPs can deploy in any location—from the most remote areas to suburban sprawl. Plus, the Calix Access Service Manager (ASM) portfolio simplifies aggregation and subscriber management so BSPs can optimize their networks, enabling scalable growth across residential, community, and business markets.
• BEAD-compliant Calix premises systems offer BSPs flexible deployment options. The compliant GigaSpire® and GigaPoint® systems from Calix support growth across single-family homes and multi-dwelling units (MDUs) within their network footprint. Leveraging the cloud-and-software-enabled platform and BEAD-compliant premises systems, BSPs can quickly access performance testing insights to accurately diagnose and address subscriber issues.
• Comprehensive funding programs, supported by two dozen partnerships, to navigate funding, network deployment, and service launches. In addition to funding support from Calix and a deep bench of expert partners—including Ready.net, customers can access award-winning Calix Success for planning, deploying, and meeting BEAD program milestones. Professional Services offer ongoing guidance and performance analysis, while Education Services provide flexible training for network deployment, configuration, and maintenance. The Customer Success Smart Start for Managed Services program helps BSPs develop a managed services launch playbook.

The vast portfolio of Calix systems includes U.S.-assembled components to meet requirements for BEAD and Build America, Buy America (BABA). Hardware from manufacturing partners in Michigan (Jabil Inc.) and New Jersey (Hisense Broadband) contribute to seamless BEAD applications for Calix customers. Calix will also follow all guidance from the National Telecommunications and Information Administration (NTIA), as that guidance is issued, to ensure all U.S.-manufactured systems meet BEAD waiver specifications and compliance.

“For 25 years, Calix has remained committed to enabling the success of rural America,” said Jerry Cederlund, senior vice president of supply chain operations at Calix. “Today, we are proud to extend that legacy by building broadband systems that meet the highest standards of quality and security for our providers who benefit from U.S. government programs like BEAD. We will continue to support providers leveraging these critical government programs as they offer unique, value-added broadband experiences for their communities. Backed by our business-transforming broadband platform, our customers can continue to trust Calix to help them build efficient businesses, grow exceptional brands, and transform lives for the better.”

Explore Calix BEAD-compliant solutions and speak to an expert from the Calix Funding Consult Program to advance your funding application.

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 U.S. and other countries. A listing of Calix’s trademarks can be found at https://www.calix.com/legal/trademarks.html. Third-party trademarks mentioned are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240711597784/en/

Press Inquiries:

Zach Burger

669-369-1991

zach.burger@calix.com

Investor Inquiries:

Jim Fanucchi

investorrelations@calix.com

Source: Calix, Inc.

FAQ

What are Calix's new BEAD-compliant broadband solutions?

Calix's new BEAD-compliant broadband solutions include scalable, resilient, and secure network systems that help broadband service providers secure part of the $42.45 billion federal funding for broadband expansion.

How much federal funding has Calix's Funding Consult Program secured?

Calix's Funding Consult Program has secured $2 billion in federal funding over the past five years.

What platforms are included in Calix's BEAD-compliant offerings?

Calix's BEAD-compliant offerings include the Intelligent Access™, Unlimited Subscriber, and Calix Cloud® platforms.

How does Calix ensure compliance with BEAD and BABA requirements?

Calix ensures compliance with BEAD and BABA requirements by collaborating with U.S.-based manufacturers and adhering to federal guidelines.