Calix Pumps Up The Services Volume At Its ConneXions 23 Partner Conference
Among a plethora of compelling announcements, broadband platform provider Calix unveiled SmartMDU at ConneXions 23 in Las Vegas, its yearly customer success and innovation conference.
The Multi-Dwelling Unit (MDU) market in the United States has experienced significant growth in recent years, with an estimated size of over 30 million units. This expansion is driven by factors such as urbanization, population growth, and the increasing demand for affordable housing options. As technology continues to play a pivotal role in modern living, MDUs are also becoming focal points for high-speed internet and smart home solutions, making them a crucial sector within the real estate market and a significant opportunity for Calix to address.
What is SmartMDU?
BSPs will be able to provide a ground-breaking value proposition for their tenants and property management clients thanks to the SmartMDU offering. When SmartMDU launches next year, it will be the only product on the market that lets BSPs provide managed Wi-Fi services previously exclusive to upscale high-rise buildings to all multi-family apartment complexes at a reasonable price.
To help property managers provide even more value to tenants, Calix customers can seamlessly integrate SmartMDU with other managed services on the Calix platform. BSPs can use home-managed services to offer tenant broadband experiences that are individually regulated and personalized, further optimizing the experience for MDU renters. Additionally, broadband providers can use Calix SmartTown to provide expanded Wi-Fi service outside of the MDU property or Calix SmartBiz to serve small companies within the MDU property.
Property managers using SmartMDU will have the opportunity to expand the broadband-inclusive lease agreements used for luxury rentals to the larger MDU market to draw in all renters looking for seamless connectivity. At a high level, SmartMDU recognizes that tenants have raised their broadband needs. It will also enable BSPs to bargain for long-term agreements, usually seven to ten years. Renters desire smart apartments because they offer convenience and enhanced quality of life. Smart apartment features such as remote-controlled thermostats, keyless entry, and smart lighting systems simplify daily routines and provide highly desired security benefits. Moreover, these amenities often lead to energy savings and contribute to a more sustainable and eco-friendly living environment, which is increasingly vital for many renters. Studies have also shown that renters are willing to pay higher rents for “smart” apartments featuring these capabilities than traditional apartments.
Other platform announcements at ConneXions 23
Calix also used ConneXions 23 to take the wrappers off interesting new platform services. The company’s HomeOfficeIQ managed service provides cellular backup from home Wi-Fi networks. Its SmartTown offering enables BSPs to extend their community-wide networks to support first responders at no incremental cost. Its SmartBiz solution, initially launched in the United States, Canada, and the United Kingdom, is crafted to facilitate BSP’s ability to simplify secure managed Wi-Fi and network management for small businesses with numerous locations, which will lay the groundwork with new monetization opportunities.
With the overarching theme of Giant Steps Higher, ConneXions 23 presented to clients of Calix broadband service providers the ingenuity and tactics that will allow them to effectively grow their markets (across residential, community, and business sectors) to develop their entire communities and defeat even the largest legacy businesses. This year’s ConneXions top-line theme, Be the Giant, expands on the previous year’s theme, which urged clients to use managed services to transform their companies by providing unique value that engenders enduring subscriber loyalty and increases value for the communities they serve locally.
During the conference, Calix’s senior management team presented compelling evidence that the company’s strategy is working. Through its collaboration with Calix, hundreds of clients have achieved Net Promoter Scores (NPS) in the 70s, 80s, and even 90s. Considering the poor reputation of legacy Internet Service Providers (ISP), these numbers are astounding in light of the negative NPS scores typical in the telecoms sector (in fact, health insurance is generally viewed as more popular than the ISP category).
NPS scores higher than Apple
With a 53 NPS, Apple is generally considered the gold standard for customer loyalty and brand recognition. Calix pointed out that its customers outperform these scores by offering new services in new markets and fully managed services for their entire community.
Calix attributes these scores to its past investments of more than $1.2 billion over 13 years in developing its broadband platform. Over the past several years, the company has made specific announcements about innovations that allow its BSPs of all sizes to more effectively serve and support families, students, first responders, business owners, property managers of multiple dwelling units (MDUs), and more.
For the past couple of years, Calix has been quite assertive in its view that laying fiber is insufficient for success. Not only are large legacy providers becoming more competitive, but a myopic BSP focus on speed ultimately leads to commoditization, lower pricing (and less profitable) pricing, and reduced customer subscriber loyalty.
From Calix’s perspective, BSPs must create a unique value offer and go beyond a “homes passed” mentality as a success indicator. Over the last several years, Calix has crafted BSP strategies prioritizing connected homes and businesses over those bypassed by fiber rollouts. In this manner, BSPs can quickly expand into new markets and quicken their go-to-market using the entire Calix broadband platform, which increases revenue and ARPU.
During the conference, Calix repeatedly recognized that the markets it participates in are becoming increasingly competitive, underscored by the company’s projection that nearly every broadband market in the United States will have two or more competitive providers over the next two years or so.
For BSP general managers, purchasing 10G is a wise long-term capital expenditure choice, but it is not a long-term success plan. Speed competition will only result in unpleasant (unwinnable) pricing wars. By investing in the Calix platform, BSPs may offer engaging broadband experiences that go beyond just fast internet. They will be able to effortlessly grow their business by entering new markets to service residential, community, and a range of business markets (including small/medium firms, MDUs, and more to come) with the help of the most recent platform advances.
Some final thoughts
Calix also introduced several entertaining market activation videos at ConneXions 23 to highlight the benefits of its numerous managed services. To communicate the unique value it offers new and current subscribers, Calix BSPs are personalizing these movies for use in their go-to-market efforts, allowing marketing personalization and customization that is both refreshing and effective. These videos continue to take advantage of comedian Gerry Dee, the perfect foil for conveying the benefits of Calix’s growing smart home, smart town, and smart business capabilities in a winning, humorous, and approachable manner.
I recently posted a video recap of my visit to ConneXions 23, punctuated by interviews with Scott Neuman, Calix’s Corporate Vice President of Corporate Marketing, who provides his perspective on the importance of the event, as well as Lumos Fiber CEO Brian Stading, who discusses why his company continues to have such a strong relationship with Calix. Finally, Jerry Cederlund, Calix’s VP of Supply Chain, discusses why the company has partnered with Jabil to produce its optical network terminals (ONTs) and optical line terminals (OLTs) in the United States as part of the Biden Administration’s Build America, Buy America (BABA) initiative.
Calix’s strategy with broadband service providers is resonating due to its customer-centric approach and innovative solutions. They focus on delivering a comprehensive ecosystem that enables service providers to meet the evolving demands of today’s digital consumers. By offering cutting-edge platforms for fiber and wireless networks, Calix empowers providers to deliver high-speed internet, ultra-reliable Wi-Fi, and smart home services efficiently. Moreover, Calix’s emphasis on open standards and compatibility ensures scalability, allowing providers to future-proof their networks. This approach enhances customer satisfaction and positions service providers to compete effectively in the fast-paced world of telecommunications, making Calix a preferred partner in the industry.
Mark Vena is the CEO and Principal Analyst at SmartTech Research based in Silicon Valley. As a technology industry veteran for over 25 years, Mark covers many consumer tech topics, including PCs, smartphones, smart home, connected health, security, PC and console gaming, and streaming entertainment solutions. Mark has held senior marketing and business leadership positions at Compaq, Dell, Alienware, Synaptics, Sling Media and Neato Robotics. Mark has appeared on CNBC, NBC News, ABC News, Business Today, The Discovery Channel and other media outlets. Mark’s analysis and commentary have appeared on Forbes.com and other well-known business news and research sites. His comments about the consumer tech space have repeatedly appeared in The Wall Street Journal, The New York Times, USA Today, TechNewsWorld and other news publications.
SmartTech Research, like all research and tech industry analyst firms, provides or has provided paid services to technology companies. These services include research, analysis, advising, consulting, benchmarking, acquisition or speaking sponsorships. Companies mentioned in this article may have utilized these services.
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