OC Fiber Grows Customer Lifetime Value 30 Percent in One Week by Transforming Go-to-Market Strategy With Calix

Rhea-AI Summary

Orange County Fiber (OC Fiber) has transformed their go-to-market strategy using the Calix Broadband Platform, resulting in a 30% increase in customer lifetime value within one week. The company launched five new tailored Wi-Fi packages featuring Calix SmartLife managed services, driving hundreds of GigaSpire Wi-Fi system upgrades. OC Fiber's new offerings include:

1. Essential Plan with network protection and community-wide Wi-Fi
2. Connected Family plan with advanced parental controls
3. Work from Home and Gamer/Streamer plans with device prioritization
4. SmartHome plan with comprehensive security features

This strategic shift has enabled OC Fiber to compete effectively against larger competitors in their Indiana market while reinvesting in their local communities.

Positive

• 30% increase in customer lifetime value within one week of launch
• Hundreds of GigaSpire Wi-Fi system upgrades, including 100 in the first 48 hours
• Successful launch of five new tailored Wi-Fi packages with SmartLife managed services
• Enhanced competitive position against larger market entrants
• $50 million reinvested into southern Indiana communities

Negative

• None.

Market Research Analyst

OC Fiber's strategic pivot, leveraging Calix's platform, has yielded impressive results in a highly competitive market. The 30% increase in customer lifetime value within a week of launch is a significant metric, indicating strong potential for long-term revenue growth. This success stems from a well-executed go-to-market strategy, focusing on tailored Wi-Fi packages that address specific consumer needs.

The rapid adoption rate, with 100 upgrades in the first 48 hours, suggests a strong product-market fit and effective communication of value propositions. The inclusion of SmartLife managed services in their offerings differentiates OC Fiber from competitors, potentially creating higher barriers to customer churn. This move towards value-added services could lead to improved profit margins and customer retention rates in the long run.

However, investors should monitor the sustainability of this growth and the impact on operational costs. The true test will be maintaining this momentum and translating it into consistent financial performance over time.

Tech Expert

OC Fiber's implementation of the Calix Broadband Platform showcases a smart technological approach to market differentiation. By offering tiered packages with advanced features like ProtectIQ for cybersecurity and ExperienceIQ for network controls, they're addressing growing concerns about online safety and user experience.

The integration of SmartTown community-wide Wi-Fi is particularly innovative, extending the value proposition beyond the home. This could be a significant competitive advantage in attracting and retaining customers. The quick deployment of new services, enabled by the Calix platform, allows OC Fiber to be agile in response to market demands.

The use of cloud insights for targeted communication is a sophisticated application of data analytics in customer engagement. This tech-forward approach, if sustained, could position OC Fiber as a leader in personalized broadband services, potentially driving further adoption and upselling opportunities.

OC Fiber leverages the Calix Broadband Platform to overhaul their go-to-market strategy, resulting in hundreds of upgrades and a 30 percent increase in customer lifetime value for subscribers who adopted new offerings built with SmartLife managed services

SAN JOSE, Calif.--(BUSINESS WIRE)-- Today, Calix, Inc. (NYSE: CALX) announced that Orange County Fiber (OC Fiber) has transformed their go-to-market strategy with residential offerings that enhance experiences for subscribers and significantly boost value for their communities. As larger competitors enter their Indiana market, OC Fiber has deepened their partnership with Calix to evolve a go-to-market strategy that has enabled them to thrive. Subscribers and members swiftly adopted five new tailored Wi-Fi packages from OC Fiber that align with how people use the internet and boost security. These packages feature Calix SmartLife™ managed services like network-level cybersecurity, connected cameras for property protection, and secure community-wide Wi-Fi. The launch drove hundreds of Calix GigaSpire® Wi-Fi system upgrades—including 100 in the first 48 hours. Within a week of launch, OC Fiber increased total customer lifetime value (CLV) by 30 percent.

Founded in 2018 by a nearly century-old electric cooperative, OC Fiber initially invested in the Calix Broadband Platform to bring secure and reliable broadband to southern Indiana at the lowest possible operational expense (OPEX). As competition grew, they employed additional support from Calix Success to revamp their approach. In just eight months, OC Fiber expanded their residential offerings with SmartLife managed services. They also transformed how they communicate these offerings to subscribers and members. Seamless integration with the Calix Platform enabled swift deployment of these services, while deep cloud insights ensure OC Fiber can communicate them to the right subscribers at the optimal time.

Leveraging SmartLife managed services, OC Fiber appealed to the needs of their residential subscribers with differentiated, tailored Wi-Fi experiences that:

• Make secure, community-wide Wi-Fi accessible to everyone. OC Fiber stands out by including home network protection and community-wide internet access in every plan. Their “Essential Plan” features Calix SmartHome™ managed services like advanced network-level cybersecurity through ProtectIQ® and access to the OC Fiber app (powered by CommandIQ®). The plan also includes Calix SmartTown® community-wide Wi-Fi, ensuring subscribers stay securely connected as they move around town.
• Provide advanced network controls and property protection for families and remote workers. OC Fiber’s “Connected Family” plan includes everything in the “Essential Plan” plus ExperienceIQ® advanced network and parental controls. For remote workers and gamers, the “Work from Home” and “Gamer/Streamer” plans feature device prioritization through ExperienceIQ and an Arlo Secure doorbell camera. All three plans cater to people who use their networks often and require advanced security—a need OC Fiber meets effortlessly through quick deployment of new services.
• Offer comprehensive security packages with benefits that extend beyond the front door. OC Fiber’s “SmartHome” plan includes all the features of other plans plus added benefits like indoor and outdoor Arlo cameras and enhanced outdoor Wi-Fi with the fast-to-deploy GigaSpire u4hm system. This premium plan delivers complete protection for the home network and property, giving subscribers seamless control over their digital lives inside and outside of the home.

“Our success stems from a deep understanding of local needs, amplified by the efficiencies of the Calix Platform,” said Matt Deaton, general manager and chief executive officer at OC Fiber. “The resources saved with Calix allow us to further our mission of supporting our communities. I’m proud that our cooperative has already invested over $50 million back into southern Indiana—and we’re just getting started. When I spoke with Calix CEO Michael Weening this spring, he challenged us to consider overhauling our residential broadband packages. You don’t know what you don’t know—but after meeting with the Calix team, we fully embraced residential managed services to offer greater security and protection to our communities. Going all-in with Calix was the right choice, and their support has been instrumental in strengthening our commitment to improving life in southern Indiana.”

“You cannot achieve success in broadband as a utility provider, which is a dead-end business model,” said Michael Weening, president and chief executive officer at Calix. “In just eight months, OC Fiber has transformed their fiber business by delivering comprehensive offerings that safeguard both the online experiences and physical property of their members and subscribers. They also took the essential step of overhauling their go-to-market. With a simple refinement of how they communicate their broadband offerings, OC Fiber saw an incredible lift in customer lifetime value in just one week, further enabling them to invest back into their communities. This is a cooperative that is truly living their values. We are thrilled to support their continued success.”

Explore how Calix helps BSPs like OC Fiber revolutionize their go-to-market strategies to captivate subscribers, drive value for their members, and gain a competitive edge.

About Calix

Calix, Inc. (NYSE: CALX)—Calix is a platform, cloud, and managed services company. Broadband service providers leverage Calix’s broadband platform, cloud, and managed services to simplify their operations, subscriber engagement, and services; innovate for their consumer, business, and municipal subscribers; and grow their value for members, investors, 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/20240911453053/en/

Press Inquiries:

Alison Crisci

919-353-4323

alison.crisci@calix.com

Investor Inquiries:

Jim Fanucchi

investorrelations@calix.com

Source: Calix, Inc.

FAQ

How much did OC Fiber increase customer lifetime value after launching new Wi-Fi packages?

OC Fiber increased total customer lifetime value (CLV) by 30% within one week of launching their new Wi-Fi packages featuring Calix SmartLife managed services.

What services are included in OC Fiber's new Essential Plan?

OC Fiber's Essential Plan includes home network protection through ProtectIQ, access to the OC Fiber app powered by CommandIQ, and SmartTown community-wide Wi-Fi for secure connectivity throughout the town.

How quickly did OC Fiber implement their new go-to-market strategy with Calix?

OC Fiber expanded their residential offerings with SmartLife managed services and transformed their communication approach in just eight months, working with Calix Success.

What features does OC Fiber's SmartHome plan offer?

OC Fiber's SmartHome plan includes all features from other plans plus indoor and outdoor Arlo cameras, enhanced outdoor Wi-Fi with the GigaSpire u4hm system, and comprehensive protection for home network and property.