Press Release

PETALUMA, CA―July 13, 2011―Calix, Inc. (NYSE: CALX) today announced that USDA Rural Development Broadband Initiative Program (BIP) award winners Cimarron Telephone Company (CimTel) and Cross Telephone Company (Cross) have selected the EXA Powered Calix E7 Ethernet Service Access Platform (ESAP) to bring advanced broadband services to residences, businesses, and anchor institutions in eleven counties in eastern Oklahoma. Both projects will leverage a combination of gigabit passive optical network (GPON) and active Ethernet (AE) technologies delivered via the E7-2 ESAP and 700GE family of optical network terminals (ONTs) to bring voice, internet protocol television (IPTV), and ultra high-speed data services capable of up to 1 gigabit per second (Gbps) to local communities. In aggregate, these two projects will pass thousands of underserved homes, businesses, and institutions – including those in numerous Native American tribal lands – and leverage approximately $60 million in BIP grants and loans, of which only a portion is access equipment.

CimTel’s project will bring fiber-to-the-premises (FTTP) and wireless broadband services to underserved areas of five northeastern Oklahoma counties. The $42.4 million award consists of a $21.2 million grant and a $21.2 million loan, of which only a portion is for access equipment. The project will pass 8,966 homes, 933 businesses, and 35 critical community institutions. E7-2 ESAPs and the 700GE family of ONTs will be utilized across the region to deliver advanced voice, data, and IPTV services using GPON technology, and 10 gigabit Ethernet (10GE) for robust access transport services.

“Having deployed fiber already in other parts of our network, we know how transformational a powerful broadband infrastructure can be for the communities served,” said Gene Baldwin, vice president of CimTel. “As a long-time Calix customer, we continue to reap the benefits of a Calix Unified Access infrastructure, gaining new operational efficiencies across our company as our subscribers benefit from the advanced new services we enable.”

The Cross BIP project brings FTTP and wireless broadband to approximately 52,000 citizens in their targeted region, as well as 4,180 businesses and 111 community institutions. Their award totals $17.6 million, consisting of an $8.8 million grant and an $8.8 million loan, of which only a portion is for access equipment. Like its sister company, Cross will leverage E7-2 ESAPs and 700GE ONTs across its targeted region to deliver advanced voice, data, and IPTV services using GPON technology, and 10GE for robust access transport services.

“Broadband access is critical to the quality of life and economic development of the citizens of our entire region,” said David Miller, president of Cross. “This award, made possible through the American Recovery and Reinvestment Act (ARRA), allows us to extend a world-class broadband infrastructure to our subscribers. Having worked with Calix for years, we are confident that they are the right partner to help us to make this project a success.”

“We would like to congratulate both CimTel and Cross on their Broadband Initiative Program awards, and the vision to continue to bring advanced broadband services to the citizens of eastern Oklahoma,” said John Colvin, vice president of field operations at Calix. “Over a decade ago, MBO companies were the first to deploy Calix platforms, working with a fledgling company to bring broadband services to their subscribers. Today, these same partners continue to bring a new generation of critical broadband services to the region. Calix is proud to be a key partner to MBO sister companies CimTel and Cross, and we look forward to working together to make eastern Oklahoma a national showcase demonstrating the promise and opportunity of broadband.”

With today’s announcement, aggregate Calix vendor selections by ARRA BIP and Broadband Technology Opportunities Program (BTOP) award winners for “last mile” and “middle mile” awards have now reached 60 different projects representing approximately $1.2 billion in ARRA-related grants, loans, and private investment for plant engineering, materials, labor, and other costs, including access equipment.

Press Release

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