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Calix Expands View Into Broadband Usage in Rural America With New Report

PETALUMA, CA -- (Marketwire) -- 07/12/12 -- Calix, Inc. (NYSE: CALX) today announced the availability of its latest Calix U.S. Rural Broadband Report, based on Internet traffic information drawn from over 50 U.S. communications service provider networks from the first quarter (January through March) of 2012. Since the release of the inaugural U.S. Rural Broadband Report last April, the scope of the applications tracked and scale of the endpoints monitored has grown significantly, increasing 40 percent to over 180 Internet applications and over 100,000 endpoints across rural America. The latest report also features a new detailed analysis of the peak broadband speeds subscribers experienced during the Q1 period, which found more than 70 percent of rural broadband subscribers are receiving service below the 4 Mbps downstream target of the Connect America Fund (CAF), while over 90 percent are experiencing upstream speeds lower than the CAF's target of 1 Mbps.

(To download the report, click here.)

Video streaming traffic continued to dominate broadband networks

As was seen in the Q4 edition of the report, video streaming continued to dominate rural broadband networks in Q1, accounting for 64 percent of downstream Internet traffic -- fairly consistent quarter-over-quarter. Upstream video streaming traffic, however, grew significantly -- increasing over 40 percent to account for nearly 19 percent of all Q1 upstream Internet traffic. In addition, video streaming made a bigger impact in all-fiber networks than other networks in the quarter, generating 70 percent of the downstream traffic in those networks.

Additional findings from the Q1 2012 report include:

  • Microsoft Bing climbed among search engine users with 13 percent of the Internet Browsing downstream traffic in the quarter, while Yahoo! usage declined to 2.2 percent.
  • Application use varied across different regions of the U.S. in Q1:
    • In the West, video streaming traffic was 15 percent above the U.S. upstream average.
    • Social media remains strong in the Midwest with usage 19 percent above the U.S. upstream average.
    • Online shopping continued to fare well in the Northeast with usage of 46 percent above the U.S. upstream average.
    • The Southeast outpaced the rest of the country in file sharing, 116 percent above the U.S. upstream average.

Along with the application-specific findings, the Q1 report provides a new level of insight into the broadband speeds rural Americans are experiencing. The most common peak downstream broadband rate consumed was between 1.5 to 3 Mbps during the quarter. 60 percent of rural broadband subscribers in Q1 received a maximum downstream broadband speed of 3 Mbps or less -- a fraction of the typical peak broadband speeds currently seen in most urban U.S. areas. However, the report also found in some areas of rural America with access to the high-end broadband services, subscribers enjoyed some of the fastest broadband speeds in the country -- peaking at over 100 Mbps in some communities, and reaching up to 1 Gbps in the most advanced areas.

"As we continue to fine tune the Calix Rural Broadband Report, we are finding more powerful ways to help our service provider customers plan, manage, and troubleshoot their networks," said Miguel Alonso, Calix vice president of software products. "Based on the overwhelming positive response from our inaugural report earlier this year, we are now tracking significantly more applications and endpoints -- providing a much richer sample and more granular analysis. Moving forward, we will continue to expand and refine our data set to this report and shine an increasingly bright light onto the broadband needs of rural Americans."

The Q1 2012 Calix U.S. Rural Broadband Report is the second in a series of reports planned to be issued quarterly. The report analyzes data derived from a subset of Calix Compass Flow Analyze deployments across the United States. Independent of the access media and broadband technology deployed, Flow Analyze provides a unique subscriber-centric view of the network and its traffic. Utilizing a software-as-a-service model, Flow Analyze gives service providers an in-depth look into both the overall traffic volumes and the general types of applications (for example, video streaming, Internet browsing, etc.) that are riding over their network infrastructure, allowing them to more effectively and efficiently plan, manage, and troubleshoot their networks without intruding on the privacy of their subscribers. In addition, Flow Analyze allows service providers to find new opportunities to expand revenue, increase customer satisfaction, optimize network resources, and reduce the cost of delivering services to subscribers.

About Calix

Calix (NYSE: CALX) is a global leader in access innovation. Its Unified Access portfolio of broadband communications access systems and software enable communications service providers worldwide to transform their networks and be the broadband provider of choice to their subscribers. For more information, visit the Calix website at www.calix.com.

This press release may contain 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 the Company's business. The reader is cautioned not to unduly 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 reports filed with the SEC, including the Company's 2011 Annual Report on Form 10-K and its report on Form 10-Q for the fiscal quarter ended March 31, 2012, available at http://www.sec.gov.

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