DZS and Irby Utilities Help First Electric Cooperative Offer Gigabit+ Broadband to Over 99,000 Member Accounts in Homes and Businesses in Central and Southeastern Arkansas

Rhea-AI Summary

DZS (NASDAQ: DZSI) announced its collaboration with First Electric Cooperative to develop Arkansas’ largest XGS-PON network. The Connect2First initiative aims to roll out over 7,000 miles of fiber, improving service to over 99,000 accounts across 18 counties. Within nine months, 2,500 miles have been deployed, reaching over 3,700 subscribers. The project leverages $17.9 million from the Rural Digital Opportunity Funds (RDOF) and aims for a 21% initial take rate, with future potential for 10 Gbps services.

Positive

• Successful deployment of 2,500 miles of fiber in nine months.
• Goal to connect over 99,000 member accounts in underserved regions.
• Partnership with First Electric and Irby Utilities enhances service delivery.
• $17.9 million received from RDOF to fund broadband expansion.
• Anticipated 30% to 33% take rate within 24 to 36 months.

Negative

• None.

Major distribution cooperative leverages RDOF and DZS/Irby expertise to enable its Connect2First subsidiary to rapidly deploy what will be Arkansas’ largest XGS-PON network

DALLAS, June 09, 2022 (GLOBE NEWSWIRE) -- DZS (NASDAQ: DZSI), a global leader in access networking infrastructure, service assurance and consumer experience software solutions, today announced the initial success of one of the largest rural broadband transformation projects currently underway in the U.S., now being deployed by First Electric Cooperative along with DZS strategic partner Irby Utilities (Irby), a Sonepar Company, in central and southeastern Arkansas. In just nine months, First Electric’s Connect2First subsidiary has leveraged Irby’s broadband network planning and deployment experience along with DZS technology solutions to roll out over 2,500 miles of fiber—more than 35% of the total planned 7,000+ mile buildout—enabling the delivery of world-class gigabit+ services to thousands of subscribers today with the goal of ultimately reaching its entire membership of over 99,000 member accounts in 18 counties in central and southeastern Arkansas over the next four to six years. This ambitious program, which leverages Rural Digital Opportunity Funds (RDOF) and potentially other government funding resources, will dramatically improve the quality of life and bring new economic opportunities to these underserved and in some parts unserved regions of the state.

“We are providing high-speed internet and phone service to the underserved, rural and highest need locations of our service area initially and have partnered with some of the leading internet contractors, like Irby Inc. and DZS, to build a system that will withstand generations of growth and create prosperity for our members and communities,” said First Electric President/CEO Don Crabbe. “We’re a utility and when times are the worst, we’re at our best. Whether it’s storm damage from a weather event or a virus, everybody must have electricity—and now also broadband, especially when families need to work and learn from home using the computer. We’ve been awarded $17.9 million via RDOF, and are pursuing multiple additional funding opportunities, such as the USDA’s ReConnect loans and grants, to help offset costs and increase the speed to market for our members.”

Besides delivering fiber to an area that has little to no broadband access, the $240 million Connect2First program will enable First Electric to connect all its substations to a fiber backbone, thus extending its operational network for SCADA. This large-scale effort is one of nine projects at different levels of completion in which DZS and Irby are presently partnering, which will collectively bring hyper-speed connectivity to approximately 300,000 subscribers, and which are approved to utilize over $100 million in RDOF funds and other federal, state, and local funding programs.

“We’ve gone from 0 to over 3,700 subscribers in 9 months of aggressive deployment, and the demand continues to grow,” said Randy Everett, CIO, First Electric and GM, Connect2First. “We have about a 21% initial take rate, and our feasibility studies anticipated a 30% to 33% take rate within 24 to 36 months. So, we’re confident that we’ll achieve—if not exceed—those numbers. Currently our fiber deployment is all GPON, but we’ll be adding XGS-PON in the coming months as we sign up not only residential subscribers but also small businesses and even large commercial companies. We’re also seeing significant interest from cellular providers looking for transport to and from their towers. Irby has been great to work with, as always. They’re able to address whatever issues and changes come up, and the fact that their main office is nearby is a big advantage. It’s the same with DZS, whose strong U.S.-based manufacturing logistics have ensured consistent and timely access to hardware. We’re ahead of schedule at the moment due to realizing efficiencies in Irby’s broadband design and hope we can stay on or near that pace going forward.”

First Electric’s service area spans over 3,600 square miles across central and southeast Arkansas, from the Ozark Mountains to the Mississippi River, and from metropolitan areas like the outskirts of Little Rock to rural and farming communities with just one or two meters per mile of line. Yet all of First Electric’s diverse 99,000-plus member accounts will ultimately be able to take advantage of the new Connect2First broadband network, which currently offers symmetrical speed residential service tiers of 200/500/1000 Mbps with the potential to deliver 10 Gbps services on demand in the future — all over the same fiber infrastructure and DZS Velocity and Helix systems now being rolled out. Irby is helping First Electric with planning and rapid deployment of multiple DZS technologies, including:

• DZS Velocity Broadband Access solutions: The DZS Velocity V14 multi-terabit FTTx OLTs with GPON, XGS-PON, and Combo line cards form the backbone of First Electric’s multi-gigabit capable services deployment. DZS V14 OLTs offer an ultra-high capacity, standards-based, fiber-optimized aggregation platform suitable for deployment in even the most demanding physical environments.
• DZS Helix Edge Access solutions: DZS ONTs and home gateways provide wired connectivity in the home.

“First Electric and Irby have shown remarkable foresight, determination and expertise to deliver world-class broadband technology and services to this large and extremely diverse area in such a short time—especially during COVID,” said Jay Hilbert, Chief Revenue Officer, DZS. “This project is already uplifting the quality of life and economic potential for the families and communities it touches and will ultimately transform how people live and work across central and southeast Arkansas. First Electric’s success exemplifies how other electric cooperatives can bring gigabit+ broadband to their members by taking advantage of the government stimulus funds and grants that are available right now, as well as the unequaled expertise and capability of DZS and Irby as partners in these transformative projects.”

The partnership between DZS, Irby and First Electric is one of many such deployments underway with rural electric co-operatives across the U.S. The RDOF program has thus far distributed over $1 billion to electric co-operative projects, with DZS and Irby involved with more than $100 million in awarded and approved funding. Billions more are still available for rural broadband projects from multiple sources. The availability of diverse funding testifies to the ability of DZS and Irby, along with First Electric and other electric co-op partners, to collectively deliver broadband services, on time and on budget, that transform quality of life and economic prospects in some of America’s most underserved communities.

For more information on DZS solutions, visit https://dzsi.com.

About First Electric Cooperative Corporation
First Electric Cooperative Corporation is a not-for-profit electric distribution cooperative that was incorporated in 1937 as the first electric cooperative in Arkansas. First Electric energized its first power lines in April 1938 near Jacksonville, Arkansas with three employees and 150 members. Today, First Electric serves more than 99,000 member accounts throughout parts of 18 counties in central and southeast Arkansas. It owns and maintains more than 10,100 miles of distribution power lines, over 201,000 power poles, over 106,000 meters and 46 substations. First Electric is the second-largest distribution cooperative in Arkansas and one of the 40 largest among over 900 electric cooperatives in the US.

About Irby Utilities

Irby was founded in 1926 and is based in Jackson, Mississippi. The company has evolved into two distinct operations, of which Irby Utilities is an industry leader with 57 locations supporting activity in 47 states. The employees of Irby Utilities serve customers with innovative products and services through its diverse portfolio in four major business channels: electric, broadband, gas and capital project services. To find out more, visit www.irbyutilities.com.

About Sonepar USA

Sonepar USA is an independent, family-owned company with global market leadership in the B-to-B distribution of electrical, industrial and safety products, services and solutions. We are a proud member of the Sonepar Group, the world’s largest privately held electrical distributor. Sonepar entered the US in 1998 and has continued to grow due to strategic acquisitions and organic growth. Today, Sonepar USA is represented by 14 locally managed operating companies with over 700 locations nationwide. For more information, visit soneparusa.com.

About DZS

DZS Inc. (NSDQ: DZSI) is a global leader in access networking infrastructure, service assurance and consumer experience software solutions.

DZS, the DZS logo, and all DZS product names are trademarks of DZS Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change.

This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Private Securities Litigation Reform Act of 1995. These statements reflect the beliefs and assumptions of the Company’s management as of the date hereof. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words, and similar expressions are intended to identify forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. The Company’s actual results could differ materially and adversely from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, those risk factors contained in the Company’s SEC filings available at www.sec.gov, including without limitation, the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and subsequent filings. In addition, additional or unforeseen affects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these risks. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. DZS undertakes no obligation to update or revise any forward-looking statements for any reason.

For further information see: www.DZSi.com.
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FAQ

What is DZS's recent announcement about?

DZS announced a partnership with First Electric Cooperative to deploy Arkansas’ largest XGS-PON network, aiming to enhance broadband access.

What is the financial backing for the Connect2First project?

The Connect2First project is supported by $17.9 million from the Rural Digital Opportunity Funds (RDOF).

How many subscribers does the Connect2First project currently have?

Currently, the Connect2First project has over 3,700 subscribers within nine months of deployment.

What are the future speed capabilities of the Connect2First network?

The Connect2First network aims to provide up to 10 Gbps services on demand in the future.

What is the expected take rate for the Connect2First project?

The project anticipates a 30% to 33% take rate within 24 to 36 months.