Calix Expands 24-Year Commitment to Rural America With Exclusive Ready.net Partnership To Simplify BEAD

Rhea-AI Summary

Calix partners with Ready.net to simplify federal grant management for broadband service providers participating in the BEAD program. The partnership aims to streamline the funding process and ensure compliance with public funding requirements, benefiting both state broadband offices and broadband service providers.

Insights

Telecommunications Industry Analyst

The partnership between Calix and Ready.net signifies a strategic move within the telecommunications sector, particularly in the context of the Broadband Equity, Access and Deployment (BEAD) program. The collaboration aims to streamline the federal grant application process for broadband service providers (BSPs), a critical factor given the urgency of upcoming deadlines in 2024. By integrating Ready.net's tools into Calix's Funding Consult Program, the partnership stands to enhance the ability of BSPs to secure necessary funding to expand their service areas, especially in underserved regions.

From an industry standpoint, the exclusive nature of the partnership positions Calix as a prominent player in the broadband platform and managed services market on the Ready.net platform. This move could potentially increase Calix's market share and customer loyalty by providing a unique value proposition. Moreover, the emphasis on compliance with the 'Build America, Buy America' initiative aligns with federal funding requirements, which could foster trust and reliability in Calix's services among BSPs.

Financial Analyst

Analyzing the financial implications, the partnership could be a significant driver for revenue growth for Calix. By facilitating access to the $42 billion BEAD funding, Calix empowers its customer base of over 1,600 BSPs to tap into a substantial financial resource for infrastructure development. The historical performance of Calix's funding team, which has assisted BSPs in securing over $2 billion through various programs, suggests a strong track record that may bolster investor confidence in Calix's ability to capitalize on this new initiative.

Furthermore, the partnership's potential to increase operational efficiency for BSPs through automated compliance and reporting processes may lead to cost savings and improved margins. These financial benefits could translate into positive stock market performance for Calix, contingent upon successful implementation and uptake of the program by BSPs.

Regulatory Compliance Expert

From a regulatory perspective, the partnership between Calix and Ready.net is poised to play a pivotal role in ensuring that BSPs adhere to stringent federal funding requirements. The automation of FCC latency and speed tests for compliance reporting is an example of how the partnership addresses regulatory demands, which is crucial for BSPs to maintain eligibility for federal grants. The 'Build America, Buy America' compliance, a stipulation of the BEAD program, further emphasizes the importance of adhering to domestic sourcing regulations.

Ready.net's expertise in project management and compliance tracking is likely to be instrumental in mitigating risks associated with regulatory non-compliance. This could result in fewer penalties and disruptions for BSPs, which is a significant advantage in maintaining uninterrupted access to public funds and sustaining operations that are compliant with federal standards.

Calix forms an exclusive partnership with funding solution provider Ready.net—ahead of urgent deadlines for the once-in-a-generation BEAD program—to simplify federal grant management and funding processes for state broadband offices while ensuring broadband service providers can seamlessly secure and maintain BEAD investments critical to expanding their service areas and supporting their communities

SAN JOSE, Calif.--(BUSINESS WIRE)-- Today, Calix, Inc. (NYSE: CALX) announced an exclusive partnership with industry-leading funding solution provider Ready.net, Inc. The partnership enables Calix to leverage Ready.net’s powerful tools as part of its existing Funding Consult Program and connect over 1,600 Calix customers with a streamlined portal to apply for and win grant funds, secure capital, and adhere to public funding requirements. At the same time, Calix will be the exclusive broadband platform and managed services provider featured on the Ready.net platform. With this partnership, both broadband service providers (BSPs) and their state broadband offices will be able to dramatically simplify every stage of the funding process for the Broadband Equity, Access, and Deployment (BEAD) program and others like it.

Calix BSPs face urgent deadlines in 2024 to apply for BEAD—a once-in-a-generation $42 billion federal funding initiative to connect underserved areas across the United States. In September 2023, Calix reaffirmed its commitment to “Build America, Buy America,” required by BEAD, to ensure customers leveraging its end-to-end broadband platform and Wi-Fi systems comply with federal funding requirements.

BEAD aligns to the vision Calix was founded on 24 years ago—to support rural USA and the BSPs that serve those communities. By investing $1.2 billion and more than a decade to innovate the world’s only end-to-end broadband platform, Calix ensures that any BSP, regardless of size, can provide innovative experiences to millions of subscribers while seamlessly expanding to serve multiple markets—residential, business, multi-dwelling unit (MDU), and local government—and efficiently leveraging public funding to strengthen their business. In 2023, customers leveraged the Calix platform to conduct a collective 323 million automated FCC latency tests and over 17.5 million FCC speed tests for compliance reporting. Over the past three years, the Calix funding team has helped hundreds of BSPs secure over $2 billion through federal and state funding programs.

Ready.net brings extensive knowledge of broadband business models to the partnership with Calix. With deep experience in innovating solutions for network planning and analysis, they deliver valuable insights for cost estimation and average revenue per user (ARPU). Ready.net also automates project management, tracking, compliance, and reporting for state broadband offices—increasing process efficiency for the state, stakeholders, and BSPs.

“We’ve made it our mission to demystify the funding process for BSPs, regardless of their size,” said Jase Wilson, founder and chief executive officer at Ready.net. “Since the inception of Ready.net, our core focus has been to connect all communities to better broadband services and safeguard families, regardless of geography and socio-economic status. Our partnership with Calix allows us to scale the impact of the solutions we have innovated specifically for the broadband industry. It is about amplifying our impact to ensure BSPs have access to funding opportunities extending to 2030 and beyond. It is an exciting journey ahead, and we are just warming up.”

“Ready.net saved us hundreds of hours, streamlining our path to secure millions of dollars in state funding,” said Darren Farnan, general manager at United Fiber. “We are thrilled to see Calix and Ready.net collaborate to make the funding process significantly easier for customers like us. It comes at a perfect time. When you run a rural broadband business, the partners you choose to work with are crucial to your success. Both Calix and Ready.net exemplify the innovative partnerships that help United Fiber deliver exceptional value to our Missourian communities.”

“Calix was founded 24 years ago with the vision to support the success of rural American BSPs,” said Michael Weening, president and chief executive officer at Calix. “We have maintained our unwavering commitment for decades, as evidenced by BSPs like ALLO Communications, Midwest Energy & Communications, SCTelcom, Tombigbee Fiber, and United Fiber, who leverage the power of the Calix Platform to succeed for their members, investors, and the communities they serve. BEAD is a complex program. Calix believes that complexity should not prevent local BSPs from securing the funding essential to living their values and enabling their subscribers with services that are transforming lives for the better. Together, Calix and Ready.net will simplify the funding process so even the smallest BSP can win with BEAD to create vital communities across rural America.”

Explore more support to streamline the funding application process ahead of rapidly approaching deadlines.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240306481946/en/

Press Inquiries:

Alison Crisci

919-353-4323

alison.crisci@calix.com

Investor Inquiries:

Jim Fanucchi

investorrelations@calix.com

Source: Calix, Inc.

FAQ

What is the partnership between Calix and Ready.net about?

The partnership aims to simplify federal grant management and funding processes for state broadband offices and broadband service providers participating in the BEAD program.

What is the significance of the BEAD program mentioned in the press release?

BEAD is a $42 billion federal funding initiative aimed at connecting underserved areas across the United States. Calix BSPs face urgent deadlines in 2024 to apply for this program.

How does Calix ensure compliance with federal funding requirements for the BEAD program?

Calix reaffirmed its commitment to 'Build America, Buy America,' required by BEAD, to ensure customers comply with federal funding requirements when leveraging its end-to-end broadband platform and Wi-Fi systems.

What benefits does the partnership between Calix and Ready.net offer to broadband service providers?

The partnership streamlines the funding process, connects over 1,600 Calix customers with grant funds, and enables BSPs to expand their service areas while leveraging public funding efficiently.

How has the Calix funding team assisted BSPs in the past few years?

The Calix funding team has helped hundreds of BSPs secure over $2 billion through federal and state funding programs over the past three years.