Calix Shifts Bandwidth War in Favor of Telcos.

New 2.5 Gbps GPON ONTs with Gigabit Ethernet Ports Give Telcos Huge Bandwidth Advantage Over Cable Operators Using DOCSIS 3.0

PETALUMA, Calif. -- Calix today announced the general availability of the 700G gigabit passive optical network (GPON) optical network terminals (ONTs). This expansion to the Calix 700-Series family of ITU G.984-compliant 2.5 Gbps GPON ONTs adds Gigabit Ethernet subscriber-side interfaces, enabling telcos to trump cable operators in terms of the bandwidth they can deliver to their customers. The 700G ONTs allow telcos to offer peak downstream rates of up to one thousand megabits per second, compared to 160 megabits per second for the as-yet-undeployed DOCSIS 3.0. Measured in terms of average or sustained bandwidth--a much more relevant comparison--telcos can deliver up to 80 megabits per second per subscriber in typical configurations versus a pedestrian 640 kilobits per second for DOCSIS 3.0-enabled cable operators using 250-home nodes. This represents an enormous 122-to-1 downstream bandwidth advantage for telcos with a similar differential in terms of increasingly important upstream bandwidth.

Bloomer Telephone is among the early service providers deploying the Calix 700G ONTs. According to Jim Smart, general manager with the Wisconsin-based IOC, "We face an entrenched cable competitor with a strong broadband product offering. Deploying a fiber-based outside plant that requires no powering and delivers 2.5 Gbps of IP-based bandwidth gives us a low-cost, high-capacity foundation that will allow us to significantly surpass this competitor."

Jeff Heynen, directing analyst for broadband and IPTV with Infonetics Research adds, "This definitely puts telcos at a significant advantage in the on-going bandwidth wars. Telcos are able to deploy access infrastructure today that typically has more bandwidth than what cable operators plan to deploy using DOCSIS 3.0. This is also a reason many cable operators are considering PON-based FTTP access networks as a replacement for HFC technology that is fundamentally 30 years old."

The 700G ONTs are available in volume now. Configuration options allow for:

* 10/100/1000 Base-T Gigabit Ethernet interface

* Optional additional 10/100 Base-T Fast Ethernet interface

* Optional RF video interface with RF return

* Optional Home Phoneline Networking Alliance (HPNA) interface

* Optional dual DS1 interfaces for business applications

* Up to four POTS interfaces on SFU models and up to 16 on MDU models

Steve Buska, Calix director of market development for premises solutions, sees Gigabit Ethernet subscriber-side interfaces coupled with a GPON FTTP solution offering the best of all possible access solutions. "From a bandwidth standpoint, GPON substantially outpaces DOCSIS 3.0; from a cost standpoint GPON significantly undercuts active Ethernet; and from flexibility and operational simplicity perspective it surpasses both."

As with other 700-Series ONTs, the 700G employs unique auto-detect optics enabling it to support a variety of PON technologies and is compatible with both C- and F-Series Calix platforms. The 700G also employs a snap-in electronics pod for fast installation; draws extremely low power, yielding longer battery life and cooler operation; optionally contains a session initiation protocol (SIP) integrated access device (IAD) for voice over IP (VOIP) conversion; and comes in a compact, aesthetically pleasing outdoor enclosure.

About Calix

Calix is the largest telecom equipment supplier focused solely on access solutions for broadband service delivery. Service providers deploy Calix access systems to enable a rich set of information, communication, and entertainment services and to expand their revenue base beyond connectivity. Calix access innovation helps service providers transform their networks from circuit to packet, narrowband to broadband, and copper to fiber. Calix has deployed millions of ports and tens of thousands of systems into hundreds of service provider networks throughout North America. 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. Actual results and the timing of events could differ materially from current expectations.