© 2005 Calix Calix Confidential & Proprietary

Service Provide Issues Service Provide Issues and Trendsand Trends

Frank Wiener – Vice President, Field Marketing

2© 2005 Calix Calix Confidential & Proprietary

Calix C7 Multiservice Access Platform

Enabling Services ExpansionAny service, any protocol, any location

Advanced IP centric services Legacy TDM centric services

Complete architecture flexibility Copper – fiber Linear – trees – rings Central office – outside plant

Capacity for broadband intensive services 200 Gbps backplane capacity

Solutions engineered for operational efficiency

Enabling Efficient Network TransformationUbiquitous broadband

Packet based service models

Seamless services integration and management

3© 2005 Calix Calix Confidential & Proprietary

Continued Market Success!

6th largest LEC

3.2 million access lines in 22 states

8th largest LEC

2.3 million access lines in 22 states

7th largest LEC

2.5 million access lines in 24 states

12th largest LEC

1.1 million access lines in 28 states

5th largest LEC

7.5 million access lines in 18 states

© 2005 Calix

180+ customers

35+ IPTV deployments

Over 22 million access lines!

4© 2005 Calix Calix Confidential & Proprietary

An Increasingly Dynamic Environment

5© 2005 Calix Calix Confidential & Proprietary

A Necessary Services Transformation

The integration of INFORMATION, COMMUNICATION, & ENTERTAINMENT INFORMATION, COMMUNICATION, & ENTERTAINMENT

services

Moving Beyond the Triple Play

6© 2005 Calix Calix Confidential & Proprietary

Services Paradigm Shift

It’s not just video anymore

Broadcast TVVideo on demandMusic on demandGaming

It’s not just data anymore

Internet access

Directory services

Content search services

It’s not just voice anymore

Phone servicesInstant messagingVideo conferencing

7© 2005 Calix Calix Confidential & Proprietary

A Necessary Network Transformation

TraditionalCommunication

Services

The network transformation strategyPhysical Narrowband Ubiquitous broadband

DSL with smaller CSAs FTTP

Logical Circuit Packet

Operational Discrete element management

Integrated services management

New Services

Integration

New Devices

Management

Migration

Capacity

Innovation

Installation

Maintenance

Efficiency

Flexibility

The Network Challenges:Deliver New Services | Reduce Costs | Facilitate Transformation

8© 2005 Calix Calix Confidential & Proprietary

POTS Terminated on Switch and

RTs

FTTP For Greenfield

A Foundation For Transformation

Voice

Class 5 TDM Switch

GR-303

Central Office

Remote Terminal

TDMPacket

Class 5 Softswitch

Internet

Router

POTS Only, POTS + DSL

LinesDSL

IPTV

Role of the CO or RT MSAP

POTS termination Optional POTS to VOIP conversion

DSL service delivery Optional IPTV

FTTP service delivery Optional IPTV

9© 2005 Calix Calix Confidential & Proprietary

“Key” Transformation Drivers

Video and increasing data rates are key drivers of broadband

Currently 15-16 Mbps, increasing to 18 - 24 Mbps (multi-HDTV) range

10© 2005 Calix Calix Confidential & Proprietary

POTS & DSL

Complete Network Transformation

Voice

Internet

Wireless

Central Office

Remote Terminal

Packet

Router

FTTP For Greenfield

IPTV

IMS(IP

Multimedia Subsystem)

100% POTS + DSL

Concurrent or phased

Ubiquitous broadband Copper, fiber

100% packet POTS to VOIP conversion

Application level services integration

© 2005 Calix Calix Confidential & Proprietary

The Power of SimplicityThe Power of Simplicity