SCTelcom Earns 79 Net Promoter Score by Transforming Every Aspect of Rural Living With Calix SmartLife Managed Services

Rhea-AI Summary

SCTelcom has significantly improved subscriber loyalty and revenue through its deployment of Calix's SmartLife managed services and Broadband Platform across rural Kansas and Oklahoma. In six months, SCTelcom achieved a Net Promoter Score (NPS) of 79 and a 3% increase in Average Revenue Per User (ARPU). The SmartLife services facilitate secure, reliable broadband connectivity for homes, schools, parks, local events, and small businesses. This initiative has also led to a 75% increase in outdoor wireless connectivity in Attica, Kansas. SCTelcom's SmartBiz service, launched in 2023, supports small business growth with secure broadband solutions. SCTelcom maintains a Customer Satisfaction (CSAT) score in the 90s and has seen NPS soar to 88 among users of its Wi-Fi systems and mobile app.

Positive

• SCTelcom achieved a Net Promoter Score of 79, more than double the industry average.
• Average Revenue Per User (ARPU) increased by 3% in the past six months.
• Outdoor wireless connectivity increased by 75% in Attica, Kansas.
• SCTelcom maintains a Customer Satisfaction (CSAT) score in the 90s.
• SmartBiz service quickly gained popularity, enhancing small business success in rural areas.
• SCTelcom's SmartLife services extend secure broadband to homes, schools, parks, events, and small businesses.
• SCTelcom has a long-term partnership with Calix, leveraging its platform to innovate community services.

Negative

• The press release does not provide specific figures on financial performance beyond ARPU and NPS.
• The reliance on Calix’s platform could pose a risk if there are changes in the partnership terms or technological issues.
• No information provided on the cost of deployment or ongoing expenses associated with SmartLife services.

Insights

Financial Analyst

Calix's impressive Net Promoter Score (NPS) of 79%, achieved through their partnership with SCTelcom, signifies a remarkable level of customer satisfaction and loyalty. The 3% increase in Average Revenue Per User (ARPU) in just six months also highlights strong financial performance. However, while NPS is an excellent indicator of customer sentiment, it's important to examine underlying financials such as revenue growth, profit margins and cash flow to gauge long-term sustainability. Additionally, the specifics behind the ARPU growth, whether it’s due to higher pricing, new service adoption, or increased customer base, remain pivotal for investors.

For retail investors, understanding that NPS and ARPU improvements usually correlate with enhanced customer retention and increased revenue streams is vital. Yet, these metrics should be tracked over an extended period to ensure they are not merely short-term gains but indicative of a sustainable competitive advantage. Further, examining the broader market context, including industry competitors' performance and market saturation, can provide a more comprehensive picture of future growth potential.

Market Research Analyst

The Calix SmartLife managed services, including SmartTown and SmartBiz, offer a transformative approach to broadband services in rural areas. The deployment of community-wide Wi-Fi and tailored broadband solutions for small businesses addresses key pain points, such as limited cell coverage and digital transaction needs at local events. This approach not only drives economic activity but also fosters digital inclusion, making these communities more attractive for new residents and businesses. However, the scalability of these initiatives beyond initial deployments remains a critical consideration for long-term growth.

From the market research perspective, the successful adoption of these services in Kansas and Oklahoma serves as a strong case study that could be replicable in other rural areas. Investors should look for signals of market expansion and new customer acquisitions in different regions as indicators of growth potential. Additionally, monitoring the competitive landscape for similar offerings from other broadband service providers can provide insights into market positioning and future challenges.

Tech Expert

The integration of Calix's SmartLife managed services through their broadband platform demonstrates significant technological innovation in delivering reliable and secure broadband to rural areas. The use of cloud capabilities and managed services allows even small BSP teams to provide extensive coverage, which can be a game-changer for rural connectivity. This technological edge is essential for handling digital equity challenges and ensuring seamless connectivity for various community needs.

Investors should be aware that the continuous technological advancements and updates to the Calix platform will be important in maintaining and expanding their market share. Additionally, the security aspects of the managed services, especially in the context of small businesses and education sectors, are vital selling points. Keeping an eye on future upgrades, partnerships and technological collaborations will provide insights into how Calix plans to stay ahead in this rapidly evolving field.

Evolving an 18-year partnership with Calix, SCTelcom leverages the latest managed service offerings for the Calix Broadband Platform to completely transform rural life in Kansas and Oklahoma for students, teachers, parents, community organizers, and small business owners, earning a Net Promoter Score of 79 and a 3 percent ARPU lift in the past six months alone

SAN JOSE, Calif.--(BUSINESS WIRE)-- Today, Calix, Inc. (NYSE: CALX) announced that, in only six months, SCTelcom enhanced subscriber loyalty and revenue by extending exceptional broadband experiences to all facets of rural life with SmartLife™ managed services and the Calix Broadband Platform.

Broadband service providers (BSPs) leverage the singular Calix Platform and integrated SmartLife managed services to connect homes (SmartHome™), parks, recreational fields, festivals, government services (SmartTown™), and local small businesses (SmartBiz™). Even small BSP teams can leverage SmartLife to deliver secure and reliable broadband everywhere their subscribers go in town. A comprehensive portfolio of managed services and the Calix Platform’s cloud capabilities enable BSPs to easily grow their offerings, delivering unrivaled subscriber experiences that win market share.

“We are proud to deliver exceptional broadband experiences that extend to every corner of the rural communities we have served for over 70 years,” said Carla Shearer, chief executive officer and general manager at SCTelcom. “Outdoor wireless connectivity increased 75 percent in the first town where we deployed SmartTown—Attica, Kansas. This transformative shift fundamentally alters residents’ day-to-day lives. We established a SmartTown community for educators, reaching hundreds of teachers across our coverage area to ensure secure and reliable connectivity during school evacuations in rural towns with limited cell coverage. We are deeply committed to continue reshaping rural connectivity across our network footprint, proving that no region is too remote for high-quality, reliable broadband services. Our almost two-decade-long collaboration with Calix has been instrumental in this community transformation.”

Utilizing the Calix Platform and SmartLife managed services, SCTelcom is:

• Earning exceptional NPS and CSAT with unmatched subscriber experiences. SCTelcom has a longstanding commitment to innovating for the customer experience. In 2021, they were awarded a Calix Innovations Award for leadership in customer support practices. Operating in communities with limited cell service, the telephone cooperative significantly expanded their offerings with managed services to address digital equity challenges and strengthen community ties. Throughout this growth, they maintained a CSAT in the 90s and now boast an overall Net Promoter Score℠ (NPS®) of 79—more than double the industry average. Among subscribers utilizing Calix Wi-Fi systems and SCTelcom’s personalized mobile app, their NPS soared to 88.
• Transforming every part of rural life for citizens while growing ARPU. Since SCTelcom deployed SmartTown and added community-wide Wi-Fi to their residential offerings, they have grown average revenue per user (ARPU) by 3 percent. The SCTelcom SmartTown network delivers secure connectivity to local events like baseball tournaments and rodeos, streamlining digital ticketing for festivals and enabling vendors and food trucks to conduct digital transactions. Out-of-town family members can stream local high school sports to support their favorite teams, and teachers can rely on a secure, uninterrupted connection for emergency communications.
• Stimulating economic activity by enabling small business success. SCTelcom launched SmartBiz in 2023 to deliver purpose-built broadband solutions for small business owners. In six months, the service has quickly gained popularity for its ease of use, allowing business owners to control their secure networks for point-of-sale systems, staff, and customers. In January, SCTelcom included SmartBiz in new business plans aimed at supporting small business subscribers in growing their businesses.

The SCTelcom team leverages ready-made, customizable marketing assets in the Calix Market Activation program to promote the value of managed services to their subscribers. The cooperative utilizes the award-winning Gerry Dee commercial campaign videos from Calix to engage subscribers with family-friendly humor on serious topics like cybersecurity. Putting their own spin on these assets, SCTelcom shares these videos on social media along with the number of digital threats they block for subscribers each month, often totaling 20,000 or more.

“Leveraging our investment in the Calix Platform and SmartLife managed services, we are not only meeting the current needs of our communities but also shaping their digital future,” said Shearer. “We take pride in the value we provide our subscribers and—with guidance from Calix—continue to find engaging and exciting ways to communicate that value.”

SCTelcom engaged the Calix Smart Start for Managed Services program to speed up time to market for SmartTown and SmartBiz. They collaborated with Calix customer success managers (CSMs) on in-person events, bootcamps, and multichannel campaigns for successful onboarding. Post-launch, SCTelcom worked with business intelligence analysts from Calix Business Insights Services to analyze subscriber feedback, developing strategies to further refine services to enhance customer satisfaction.

“For almost 25 years, the Calix team has lived our values, helping our customers transform rural communities,” said Michael Weening, president and chief executive officer at Calix. “We are proud to support SCTelcom’s mission to democratize broadband services to make a multi-generational impact in Kansas and Oklahoma. Less than two years after we launched SmartTown, they leveraged it to change how their subscribers work, learn, and connect with their families. A little over a year since we released SmartBiz, they are already helping local small businesses grow and prosper across their communities. Carla and her team exemplify what can be achieved with the power of the Calix Platform—transforming rural life while lowering operating costs and earning industry-beating NPS.”

Watch the webinar replay, “How Do Top Service Providers Use Community Wi-Fi to Drive Revenue?” to learn how SCTelcom is utilizing SmartLife managed services to enhance life in their communities.

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.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240606910573/en/

Press Inquiries:

Alison Crisci

919-353-4323

alison.crisci@calix.com

Investor Inquiries:

Jim Fanucchi

investorrelations@calix.com

Source: Calix, Inc.

FAQ

What Net Promoter Score did SCTelcom achieve with Calix SmartLife services?

SCTelcom achieved a Net Promoter Score of 79.

How much did SCTelcom's Average Revenue Per User increase due to SmartLife services?

SCTelcom's Average Revenue Per User (ARPU) increased by 3% in the past six months.

What is the impact of SmartLife services on outdoor wireless connectivity in Attica, Kansas?

Outdoor wireless connectivity increased by 75% in Attica, Kansas due to SmartLife services.

What Customer Satisfaction score does SCTelcom maintain?

SCTelcom maintains a Customer Satisfaction (CSAT) score in the 90s.

When was SCTelcom's SmartBiz service launched?

SCTelcom's SmartBiz service was launched in 2023.

What are the benefits of SCTelcom's SmartLife services?

SCTelcom's SmartLife services provide secure, reliable broadband connectivity for homes, schools, parks, events, and small businesses.

What are the risks associated with SCTelcom's reliance on Calix's platform?

Risks include potential changes in partnership terms or technological issues affecting service delivery.