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Calix Industry-First ONT Speed and Latency Testing Delivers Broadband Performance Insights So Providers Can Differentiate Through Amazing Customer Support

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Calix has introduced a groundbreaking on-demand optical network terminal (ONT) speed and latency testing for broadband service providers (BSPs). This feature, available on the Calix Broadband Platform, allows BSPs to diagnose and address subscriber issues efficiently without the need for service technician visits. The innovation extends existing testing capabilities, which include FCC Performance Testing and multi-gig speed testing up to 10 Gbps. By leveraging automated subscriber alarm reporting and high-value classification, BSPs can improve customer satisfaction (CSAT) and reduce trouble calls. The platform, recognized with several customer support awards, aims to help BSPs differentiate through superior customer support and subscriber experience.

Positive
  • Introduction of on-demand ONT speed and latency testing.
  • Eliminates the need for service technician visits.
  • Extends testing capabilities including FCC Performance Testing and multi-gig speed testing up to 10 Gbps.
  • Automated subscriber alarm reporting improves customer satisfaction.
  • Platform recognized with multiple customer support awards.
  • Helps BSPs differentiate through superior customer support and subscriber experience.
Negative
  • Potential high costs associated with implementing new technology.
  • Risk of increased competition as other companies may develop similar technologies.
  • Dependence on accurate performance data from ONT testing for customer satisfaction.

Insights

Calix's introduction of on-demand ONT speed and latency testing is a noteworthy innovation in the broadband sector. By allowing broadband service providers (BSPs) to run these tests remotely, this technology significantly enhances diagnostic capabilities. Currently, diagnosing network vs. equipment issues often requires physical intervention, which is costly and time-consuming. The ability to perform these tests remotely without dispatching technicians represents a major operational efficiency improvement.

This advancement also aligns well with the trend of integrating cloud-based solutions for network management, further leveraging data to optimize service delivery. The use of historical data over the past 90 days for real-time troubleshooting is particularly impactful, providing valuable insights into recurring issues and enabling proactive problem-solving.

In terms of industry standards, the adoption of the Broadband Forum TR-143 standard for testing underscores Calix's commitment to delivering reliable and standardized solutions. This compliance not only ensures accuracy but also facilitates broader industry acceptance and integration.

For retail investors, this innovation suggests a potential competitive edge for Calix. The company's ability to enhance operational efficiency and customer satisfaction could translate to sustained growth and market share gains. However, it's important to monitor how effectively these technological advancements are adopted by BSPs and whether they result in measurable improvements in customer satisfaction and operational metrics.

From a market perspective, Calix's latest offering strengthens its value proposition by addressing a critical pain point in the ISP market: customer support and troubleshooting efficiency. The ability to perform on-demand testing directly at the ONT simplifies the role of customer support and network operations teams, reducing the need for manual processes and physical interventions.

Customer satisfaction (CSAT) and Net Promoter Score (NPS) are key performance indicators for service providers. By automating alarm reporting and enabling high-value classification for prioritizing issues, Calix helps its customers to potentially achieve remarkable NPS ratings. This feature is especially beneficial for BSPs operating in competitive markets where differentiation through superior customer support can be a significant advantage.

Investors should view this development as a strategic move to not only retain existing customers but also attract new ones through enhanced service performance. The multi-server capabilities that support speed testing up to 10 Gbps for geographically diverse markets further expand the utility of this platform, making it an attractive option for BSPs aiming to scale and improve service quality in different regions.

Overall, while the technology promises operational efficiencies and improved customer satisfaction, it is important for investors to track its market adoption and the tangible benefits realized by Calix's customers in terms of reduced trouble calls and faster issue resolution times.

Financially speaking, Calix's investment of over $1 billion in developing their cloud-and-software-enabled platform shows a significant commitment to innovation and long-term growth. This ONT speed and latency testing feature can potentially drive higher customer satisfaction, which may translate to lower churn rates and increased subscriber retention for BSPs. This, in turn, can positively impact Calix's revenue streams and profitability.

The reduction in operational costs for BSPs—due to fewer truck rolls and more efficient issue resolution—could be a compelling selling point that justifies a premium pricing strategy for Calix's platform. This could boost the company's margins and provide a stronger financial foundation moving forward.

If successfully adopted, this technology may also position Calix favorably in securing new contracts and expanding its customer base. The integration with FCC Performance Testing and compliance with industry standards like the Broadband Forum TR-143 can further enhance credibility and trust among potential customers.

Investors should keep an eye on the quarterly financial reports for indicators of increased platform adoption and any resulting impact on revenue growth and profitability. The company's ability to leverage this innovation to gain market share in a competitive landscape will be important for its financial health and stock performance.

In an industry breakthrough, Calix expands the cloud capabilities for the Calix Broadband Platform by introducing the first on-demand ONT speed and latency testing—providing broadband performance insights that service providers can leverage to accurately diagnose and address subscriber issues with a simple click of a button

SAN JOSE, Calif.--(BUSINESS WIRE)-- Calix, Inc. (NYSE: CALX) unveiled groundbreaking capabilities for broadband service providers (BSPs) with the industry’s only on-demand optical network terminal (ONT) speed and latency testing. This innovation further advances the testing capabilities currently available for Wi-Fi gateways on the cloud-and-software-enabled Calix Broadband Platform. With the click of a button, BSPs can utilize the platform to run speed and latency tests to streamline issue resolution for subscribers—easily deciphering a subscriber equipment issue versus a network issue without dispatching a service technician to the subscriber’s home. Additionally, ONT speed and latency testing on the Calix Platform allows open access network operators to quickly verify network performance for their retail internet service provider (ISP) customers.

This industry milestone extends the full set of broadband service testing capabilities in Calix Cloud®, the cloud insights engine on the Calix Platform. This robust portfolio began with support for FCC Performance Testing in partnership with Ookla and expanded to include multi-gig speed and latency testing based on the Broadband Forum TR-143 standard. The newly supported on-demand ONT speed and latency testing capability gives BSPs more visibility into the quality of service they provide so they can continue to prove the value of their offerings. With a diverse range of testing capabilities on one platform, BSPs can more easily ensure exceptional subscriber experiences that earn a remarkable Net Promoter Score℠ (NPS®) in the 70s, 80s, or even 90s.

With the latest updates to the Calix Platform, BSPs can simplify the complexity of support and network operations while improving the subscriber experience with:

  • On-demand ONT-based speed and latency testing to quickly diagnose issues. By leveraging a fully integrated solution, this industry-first innovation simplifies speed and latency testing for the latest generation of Calix ONTs, allowing operations teams to validate network performance and improve first call resolution. It also enables faster, more accurate problem isolation during real-time troubleshooting by providing historical testing over the past 90 days. Critically, speed and latency tests can be performed by both customer support and network operations teams directly at the ONT without requiring access to additional dedicated test equipment.
  • Automated subscriber alarm reporting and high-value classification for higher CSAT. Network operations and customer support teams can now identify issues with automated alarm reporting and scheduled traffic reports to proactively understand trends and eliminate manual processes. Additionally, BSPs can streamline troubleshooting for high-value subscribers to better prioritize issues. The results are reduced trouble calls, quicker time to resolution, and improved customer satisfaction (CSAT).
  • Multi-server capabilities enabling speed testing up to 10 Gbps for geo-diverse markets. BSPs can easily expand multi-gig (up to 10 Gbps) speed and latency testing coverage to geographically diverse markets with multiple servers. This helps mitigate latency during testing, increases accuracy, and validates service performance.

Calix Cloud has earned significant accolades for its customer support and network operations capabilities. Calix Service Cloud recently won the Call Center Award from the 2024 BMMA Best in Class Marketing Awards and was named a 2024 Customer Product of the Year winner by TMC. Calix Operations Cloud was also recognized as a 2022 Cloud Computing Product of the Year by TMC.

“There has been a significant lack of industry innovation using the ONT for speed and latency testing,” said Shane Eleniak, chief product officer at Calix. “Leveraging our previous innovations in FCC CAF testing and the more than $1 billion we invested to build our cloud-and-software-enabled platform, we were well positioned to achieve this industry milestone for our customers. Our platform enables BSPs to conduct every test needed—be it to secure funding, comply with FCC regulations, or now pinpoint and diagnose subscriber issues at the ONT with just one click. Calix customers can simply and easily decipher a subscriber equipment issue versus a network issue without rolling a truck or spending more resources. As a result, our customers can continue to grow in crowded broadband markets by differentiating on the customer support they provide and the exceptional subscriber experiences they enable.”

Learn more about the full set of broadband service testing capabilities—including new ONT speed and latency testing—only available on the Calix Broadband 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.

Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.

Press Inquiries:

Zach Burger

669-369-1991

zach.burger@calix.com

Investor Inquiries:

Jim Fanucchi

investorrelations@calix.com

Source: Calix, Inc.

FAQ

What new feature did Calix introduce for broadband service providers?

Calix introduced on-demand optical network terminal (ONT) speed and latency testing for broadband service providers.

How does Calix's new ONT testing benefit broadband service providers?

It allows providers to diagnose and address subscriber issues efficiently without the need for service technician visits.

What additional testing capabilities does the Calix Broadband Platform include?

The platform includes FCC Performance Testing and multi-gig speed testing up to 10 Gbps.

How does automated subscriber alarm reporting affect customer satisfaction?

Automated reporting helps to reduce trouble calls and improves customer satisfaction (CSAT).

What awards has the Calix Broadband Platform received?

The platform has been recognized with several customer support awards, including the Call Center Award from the 2024 BMMA Best in Class Marketing Awards.

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