Smithville Differentiates With Outdoor Wi-Fi for Homes and Businesses, Growing Multiple Markets With Calix Managed Services

Rhea-AI Summary

Calix, Inc. (NYSE: CALX) announced that Smithville Communications is leveraging the Calix Broadband Platform and managed services to deliver secure, outdoor Wi-Fi for residential and business subscribers. This offering enhances Smithville's existing SmartHome residential managed services, including connected camera property protection and network security. Smithville has also expanded its business market with Calix SmartBiz, a solution for small businesses.

Key highlights:

• Smithville's outdoor Wi-Fi campaign generated hundreds of subscriber inquiries
• The company has doubled GigaSpire Wi-Fi system subscribers in the last 12 months
• Smithville blocks 22,000 monthly digital threats with ProtectIQ network security
• The Calix Platform enables personalized communications and cloud insights for market success

Positive

• Smithville's outdoor Wi-Fi campaign generated hundreds of subscriber inquiries
• Smithville doubled the number of subscribers using Calix GigaSpire Wi-Fi systems in the last 12 months
• Smithville blocks 22,000 monthly digital threats with ProtectIQ network security
• Expansion into business market with Calix SmartBiz solution for small businesses
• Increased subscriber engagement through enhanced security services and mobile app access

Negative

• None.

Insights

Technology Analyst

Smithville Communications' expansion into outdoor Wi-Fi services for residential and business customers represents a strategic move to differentiate in the competitive broadband market. This initiative, powered by Calix's platform, has several noteworthy implications:

• Market Expansion: By offering outdoor Wi-Fi, Smithville is tapping into new customer segments like landscaping companies, farms and small businesses, potentially increasing its total addressable market.
• Revenue Diversification: The addition of outdoor Wi-Fi to existing security-focused offerings could lead to higher average revenue per user (ARPU) and improved customer retention.
• Operational Efficiency: Leveraging Calix's platform for quick deployment and low operational expenses suggests potential for improved profit margins.
• Customer Engagement: The significant increase in subscriber engagement with the Smithville mobile app indicates stronger customer relationships, which could translate to lower churn rates.

However, investors should note that while the initial response seems positive, with "hundreds of subscriber inquiries" and "dozens of installations," concrete financial impacts are not yet quantified. The long-term success will depend on sustained demand and the ability to scale efficiently.

Cybersecurity Expert

Smithville's focus on security in their broadband offerings is particularly noteworthy in today's digital landscape. The company's claim of blocking 22,000 cybersecurity threats monthly is impressive and highlights the growing importance of integrated security solutions in internet services. This approach addresses several key areas:

• Proactive Threat Prevention: By integrating ProtectIQ network security, Smithville is providing a valuable layer of protection against a wide range of digital threats.
• Physical Security Enhancement: The inclusion of Arlo Secure connected camera property protection extends the security envelope beyond just digital threats, addressing a holistic security need for customers.
• Business Compliance: For small business customers, the emphasis on safety, security and compliance of online activities could be a significant differentiator, especially in industries with strict data protection requirements.

From an investor perspective, this security-centric approach could lead to higher perceived value of Smithville's services, potentially justifying premium pricing and improving customer loyalty. However, it's important to monitor the ongoing effectiveness of these security measures and Smithville's ability to adapt to evolving cyber threats.

Market Research Analyst

Smithville's outdoor Wi-Fi initiative, supported by Calix's platform, demonstrates a keen understanding of evolving consumer needs and market trends. Several aspects of this strategy are particularly intriguing:

• Personalized Marketing: The use of Calix Engagement Cloud for personalized communications shows a data-driven approach to customer acquisition and engagement. This targeted marketing could lead to more efficient customer acquisition costs.
• Diverse Market Appeal: By catering to both residential (e.g., lakefront properties, suburban homes) and business customers (e.g., landscaping companies, farms, churches), Smithville is positioning itself for growth across multiple segments.
• Low Barrier to Entry: Offering the GigaSpire u4hm without installation fees or upfront costs reduces adoption friction, potentially accelerating market penetration.
• Value-Added Services: The integration of security services and easy access to cybersecurity reports via a mobile app adds layers of value that could justify higher subscription fees.

The success of this strategy will likely depend on Smithville's ability to effectively communicate the value proposition of outdoor Wi-Fi and associated services to different customer segments. Investors should watch for metrics on customer acquisition costs, adoption rates across different segments and any impact on ARPU or churn rates to gauge the long-term success of this initiative.

Building on its success with myriad security-focused broadband offerings—including blocking 22,000 cybersecurity threats monthly and providing homeowners peace of mind with connected cameras—Smithville further differentiates with outdoor Wi-Fi for residential and business subscribers

SAN JOSE, Calif.--(BUSINESS WIRE)-- Today, Calix, Inc. (NYSE: CALX) announced that 20-year customer Smithville Communications is leveraging the Calix Broadband Platform and purpose-built managed services to deliver secure, outdoor Wi-Fi for residential and business subscribers. Smithville’s outdoor Wi-Fi offering enhances its existing Calix SmartHome™ residential managed services—like connected camera property protection from Arlo Secure and network security from ProtectIQ®—inside and outside the home. Smithville also delivers outdoor Wi-Fi to businesses like landscaping companies, farms, churches, and inns. In August 2023, Smithville expanded its business market with Calix SmartBiz™, a purpose-built, all-in-one broadband solution featuring security and productivity services tailored to the needs of small businesses.

Smithville’s outdoor Wi-Fi campaign, supported by Calix Success, generated hundreds of subscriber inquiries. Within weeks of launch, Smithville performed dozens of installations of Calix GigaSpire® u4hm outdoor systems and has since received a steady influx of orders.

“Adding outdoor Wi-Fi for our residential and business subscribers was an easy decision with innovation and support from Calix,” said Darby McCarty, chief executive officer and chairman at Smithville. “The Calix Platform has made it simple for us to adopt and launch managed services to differentiate and provide additional value to our customers. With outdoor Wi-Fi, we are extending and reinforcing our commitment to safe and secure broadband.”

Smithville leverages the full capabilities of the Calix Platform to:

• Deliver secure outdoor Wi-Fi to subscribers quickly and at the lowest operational expense. Smithville has doubled the number of subscribers using Calix GigaSpire Wi-Fi systems in the last 12 months. All Calix systems are easily deployed and operate on the industry’s only business-transforming platform. The compact, weather-resistant GigaSpire u4hm delivers exceptional outdoor connectivity and enhances outdoor security system capabilities without an installation fee or upfront cost—ideal for lakefront properties, suburban homes, and small farms.

• Leverage cloud insights for transformational go-to-market success with personalized communications. Using the Calix Platform’s cloud capabilities, Smithville effectively communicates new offerings to residential and business subscribers. The “Take Your Connection Outside” campaign from Smithville launched outdoor Wi-Fi with personalized messages informed by Calix Engagement Cloud insights.

• Extend managed services outdoors to enhance subscriber security. Smithville leveraged SmartHome to expand residential offerings in 2023, launching comprehensive security packages with ProtectIQ network security to block 22,000 monthly digital threats and Arlo Secure connected camera property protection. Enhanced security services and easy access to cybersecurity reports via the Smithville mobile app (built on Calix CommandIQ®) increased subscriber engagement significantly over the past year. Additionally, Smithville’s SmartBiz offering, now with outdoor Wi-Fi, ensures the safety, security, and compliance of critical small business online activities.

“Smithville is redefining the broadband experience by expanding secure, outdoor Wi-Fi and advanced security services to both residential and business markets,” said John Durocher, chief customer officer at Calix. “Through a strategic partnership with Calix Success, Smithville has designed and launched new packages that directly address subscriber needs. Our Success team helped train field technicians, align organizational efforts, and integrate Arlo Secure into Smithville’s security offerings. By innovating to differentiate, Smithville is driving major market growth while continuing to improve life in its Indiana communities.”

Explore how BSPs easily deliver exceptional subscriber experiences—inside and outside—with integrated managed services and 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/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/20240801516529/en/

Press Inquiries:

Alison Crisci

919-353-4323

alison.crisci@calix.com

Investor Inquiries:

investorrelations@calix.com

Source: Calix, Inc.

FAQ

What new service is Smithville Communications offering with Calix's technology?

Smithville Communications is offering secure, outdoor Wi-Fi for both residential and business subscribers using Calix's Broadband Platform and managed services.

How has Smithville's subscriber base for Calix GigaSpire Wi-Fi systems changed in the past year?

Smithville has doubled the number of subscribers using Calix GigaSpire Wi-Fi systems in the last 12 months.

How many cybersecurity threats does Smithville block monthly using ProtectIQ?

Smithville blocks 22,000 monthly digital threats using ProtectIQ network security.

What new market has Smithville expanded into with Calix SmartBiz?

Smithville has expanded into the small business market with Calix SmartBiz, an all-in-one broadband solution featuring security and productivity services.

How has Smithville's outdoor Wi-Fi campaign performed?

Smithville's outdoor Wi-Fi campaign, supported by Calix Success, generated hundreds of subscriber inquiries and resulted in dozens of installations of Calix GigaSpire u4hm outdoor systems within weeks of launch.