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Calix Delivers Industry’s Only Integrated, High-Density Service Aggregation Portfolio So Broadband Providers Can Serve Highly Populated Regions and New Markets

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Calix has introduced the ASM5001, an innovative addition to its service aggregation portfolio, designed to meet the needs of broadband providers in densely populated areas. The ASM5001 integrates Layer 3 service delivery, subscriber management, and high-density optical line terminal (OLT) aggregation. This solution offers up to 4X more capacity and supports 100GE-to-400GE aggregation, enhancing operational efficiency and reducing costs for broadband service providers. Calix's ASM5001 aims to streamline network functions, lower total costs, and enable quick market expansion. This new product also ensures seamless integration with existing network infrastructure, simplifying service delivery and management.

Positive
  • Launch of ASM5001, a high-capacity service aggregation solution.
  • Integration of Layer 3 service delivery, 100GE aggregation, and OLT nodal management.
  • Up to 4X more capacity, supporting 100GE-to-400GE aggregation.
  • Reduces operational costs and power consumption by eliminating separate hardware.
  • Improves efficiency through automation and streamlined workflows.
  • Facilitates easy entry into new markets, particularly in densely populated areas.
  • Enhances subscriber experience with reduced latency and improved reliability.
  • Aligns with growing demand for bandwidth in urban and suburban areas.
  • Complements the existing ASM3001, expanding the ASM portfolio.
Negative
  • High initial investment costs could be a barrier for some broadband providers.
  • Implementation and deployment may require significant changes to existing network infrastructure.
  • Potential risks associated with transitioning to a highly consolidated network system.

Insights

Calix's launch of the ASM5001 introduces a significant advancement in broadband service delivery, offering a unique combination of features that address current and future needs of broadband service providers (BSPs). The ASM5001 integrates Layer 3 service delivery, subscriber management and high-density optical line terminal (OLT) aggregation, making it particularly well-suited for densely populated urban and suburban areas. This innovation is expected to streamline network operations, reduce costs and enhance service quality by consolidating multiple network functions into a single, modular data center solution.

From a technological standpoint, the ASM5001's capability to handle 100GE-to-400GE aggregation and support for future 50 Gbps passive optical networks (PON) represents a significant leap forward. This ensures scalability and future-proofing, which are critical for BSPs looking to expand their services and enter new markets. By reducing the total cost of ownership and operational expenses through the elimination of separate OLTs, broadband network gateway (BNG) systems and aggregation routers, Calix is addressing a key pain point for many BSPs—operational efficiency.

The modular nature of the ASM5001 also makes it adaptable, allowing BSPs to deploy it in various network environments, from highly dense urban areas to less populated regions. This flexibility is a strong selling point, as it enables BSPs to customize their infrastructure according to specific market demands and growth opportunities.

The introduction of the ASM5001 by Calix comes at a strategic time, with a reported 15% increase in new MDU housing in densely populated areas. This surge in housing development presents a lucrative opportunity for BSPs to expand their market reach and enhance service delivery. The ASM5001's capabilities align well with these market trends, offering BSPs the tools needed to capitalize on the growth of planned communities and multi-dwelling units (MDUs).

The ability to streamline the deployment of managed services such as SmartHome™, SmartBiz™ and SmartTown™ positions BSPs to provide differentiated services, thereby gaining a competitive edge. This competitive advantage is important in a market where consumer demands for high-speed, reliable broadband services are constantly increasing. Furthermore, the reduction in operating expenses and improved operational efficiency promised by the ASM5001 could lead to better profit margins for BSPs, making the investment in this technology a financially sound decision.

For investors, this development might signal a positive outlook for Calix's future revenue streams and market position. The company's commitment to innovation and addressing the evolving needs of the broadband market could enhance investor confidence and drive stock value.

As broadband providers seek to scale regional networks, Calix launches the high-capacity ASM5001, offering an unparalleled integrated solution for Layer 3 service delivery, subscriber management, and high-density OLT aggregation so customers can serve high-growth, dense service areas where planned communities and MDUs are prevalent

SAN JOSE, Calif.--(BUSINESS WIRE)-- Calix, Inc. (NYSE: CALX) today launched the ASM5001 as the latest addition to its service aggregation portfolio for Intelligent Access on the Calix Broadband Platform. This launch delivers the industry’s first software-defined broadband system, merging Layer 3 service delivery, subscriber management, 100GE aggregation, and high-density optical line terminal (OLT) nodal management. This combination provides the capacity to aggregate service traffic while easily supporting network expansion—particularly for dense urban and suburban areas, including those featuring planned communities and multi-dwelling units (MDUs)—to drive and sustain long-term business growth across multiple markets. Given the recent 15 percent jump in new MDU housing in densely populated areas, service providers can enter this market while enhancing service delivery.

Each innovation delivered by the ASM5001 complements the ASM3001 from Calix, which cost-effectively distributes 10GE service aggregation to the edge of the network. Together, these aggregation solutions further enable broadband service providers (BSPs) to simplify their business as they grow by consolidating network functions and moving service aggregation closer to the subscriber.

The expanding ASM portfolio enables BSPs to meet network needs, today and well into the future—extending flexible and efficient Layer 3 service networks from the data center to the most distant service locations and aggregation points in their broadband network. The ASM5001 is:

  • Easy to deploy and streamlines delivery of managed services to expand to new markets. As a modular data center solution, it offers BSPs up to 4X more capacity, supporting 100GE-to-400GE aggregation, Layer 3 services, and subscriber management. By optimizing broadband service delivery, BSPs can streamline the deployment of Calix SmartLife™ managed services to residential subscribers (SmartHome™), small businesses (SmartBiz™), and entire communities (SmartTown™). Service providers that adopt the ASM5001 will be more easily positioned to serve MDUs with the forthcoming SmartMDU™ solution from Calix.
  • Highly efficient and lowers total cost of ownership. Consolidating network functions with simplified workflows and automation improves operational efficiency and reduces cost. It also uniquely integrates management and aggregation for high-density 10 Gbps and future 50 Gbps passive optical networks (PON).
  • Ideal for running simplified, sustainable networks thanks to consolidation and elimination of hardware. By eliminating separate OLTs, broadband network gateway (BNG) systems, and aggregation routers, the ASM5001 greatly reduces operating expenses and power consumption. This allows BSPs to expand to new markets quickly and cost-effectively.

The ASM5001 can serve as an aggregator for the ASM3001, which similarly simplifies broadband networks through consolidation and moving network functions closer to the subscriber. Easily leveraged for less densely populated areas, the ASM3001 supports 10GE-to-100GE service aggregation and streamlines subscriber management. The results are reduced latency and improved reliability that enhance the subscriber experience.

“The ASM portfolio offers an integrated solution that gives us the opportunity to easily grow and scale into new markets,” said Ethan Webinger, chief operating officer at AcenTek. “The addition of the ASM5001 will increase our capacity for high-density Layer 3 aggregation applications and improve our ability to deliver the services our business subscribers need for their enterprises. It also complements the critical role the ASM3001 plays for aggregating subscriber managed services and integrates seamlessly with our existing Intelligent Access network. Innovations like this and a focus on helping us succeed for our community are a fundamental reason we partner with Calix.”

“Calix has invested more than $1.2 billion and 13 years to develop the industry’s singular Broadband Platform, including a robust service aggregation and subscriber management portfolio,” said Shane Eleniak, chief product officer at Calix. “The ASM5001 reinforces our commitment to innovation by further consolidating network functions that drive even greater automation and operational efficiency. As demand for bandwidth increases year-over-year, this portfolio enables BSPs to cost-effectively deliver differentiating managed services across highly populated urban and suburban environments.”

Learn more about the expanding ASM portfolio on the Calix Platform.

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/pages/trademarks.html. Third-party trademarks mentioned are the property of their respective owners.

Press Inquiries:

Zach Burger

669-369-1991

zach.burger@calix.com

Investor Inquiries:

Jim Fanucchi

investorrelations@calix.com

Source: Calix, Inc.

FAQ

What is Calix's ASM5001?

The ASM5001 is an integrated, high-capacity service aggregation solution for broadband providers, supporting Layer 3 service delivery and high-density OLT aggregation.

How does the ASM5001 benefit broadband providers?

It enhances operational efficiency, reduces costs, and supports easy market expansion, particularly in densely populated areas.

What capacity does the ASM5001 offer?

The ASM5001 offers up to 4X more capacity, supporting 100GE-to-400GE aggregation.

How does the ASM5001 improve network efficiency?

By consolidating network functions, automating processes, and eliminating separate hardware, it reduces operational costs and power consumption.

What markets does the ASM5001 target?

The ASM5001 is designed for densely populated urban and suburban areas, including planned communities and multi-dwelling units (MDUs).

How does the ASM5001 integrate with existing networks?

It complements the ASM3001 and integrates seamlessly with Calix's existing Intelligent Access network, simplifying service delivery and management.

What are the potential challenges with the ASM5001?

High initial investment costs, significant network infrastructure changes, and risks associated with transitioning to a consolidated system.

CALIX, INC.

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