1 2012 Calix Proprietary and Confidential

The information contained in this presentation is not a commitment, promise, or legal obligation
to deliver any material, code, or functionality. The development, release, and timing of any
features or functionality described for our products remain at our sole discretion.
The information contained in this presentation is not a commitment, promise, or legal obligation
to deliver any material, code, or functionality. The development, release, and timing of any
features or functionality described for our products remain at our sole discretion.
Understanding Deployment Costs of Fibre-to-the-Home
Steve Straatman, Brooke Telecom
Stan Chorney, Westman Communications Group
Mike Nijman, Sasktel
David Russell, Calix, Moderator

2 2012 Calix Proprietary and Confidential
About Brooke Telecom
One of the smallest ILEC operating in Canada
Cooperative
Total of 13 employees
Installed Occam / Calix in 2007
Provide to approx. 1,500 customers in an entirely rural environment

Services:-1350.Residential lines
-215 Business lines
-1040.DSL
-280IPTV
-530Cell
-16 ..Security
FTTH Customers: 350 / 23%

Now started CLEC in Watford (pop. 1800)
Community reputation is very important
Overbuilding Bell copper and Independent Cable Co.

ILEC customers on hold for 3-4 years










3 2012 Calix Proprietary and Confidential
Westman Communications Group
Servicing 36 Communities
in Western Manitoba
TV, Internet, Telephone and
Business Services
Over 30,000 customers
Over 700 km of fibre
deployed
300 Greenfield lots
accessible to FTTH
Active members of Cable
Labs, SCTE, CCSA, NCTA



4 2012 Calix Proprietary and Confidential
Service Providers Using Technology
U.S. Fibre Access by Technology
0 50 100 150 200 250 300 350 400 450
EPON
AE / Pt-to-Pt
BPON
GPON
Source: Broadband Communities, October 2011
Nov. 2011
Nov. 2008
+151%
- 52%
- 3%
+324%
*AE/Pt-to-Pt includes business
services only
*
5 2012 Calix Proprietary and Confidential
FTTH Council Cost Model
-Cost to pass a home (plus
$650 per home served)


Housing Density
(sq/mile)
$$ per home
passed
100 homes/ sq mile $1510
50 homes/ sq mile $1831
25 homes/ sq/mile $2155
10 homes/sq mile $2584
5 homes/sq mile $2907
y =-467.24Ln(x) +3658.9
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
1 10 100 1,000 10,000
HHs per Square Mile
F
T
T
H

C
o
s
t

T
o

P
a
s
s

p
e
r

H
H
FTTH Cost Per Home Passed
6 2012 Calix Proprietary and Confidential
Impact of Take Rates on Cost Per Home
Served @50 homes per sq/mile
FTTH Deployments are Averaging 50% Take Rates
30% Take Rate 50% Take Rate 100% Take
Rate
Cost per Home
Passed

$1831

$1831

$1831
Incremental
Cost per Home
Served


$650


$650


$650
Actual Cost
per Home
Served

$6753

$4312

$2481

7 2012 Calix Proprietary and Confidential
FTTH Council Benchmarking
FTTH Operations
ONTs, running drops to homes
80% outdoor, 20% indoor
63% of drops installed when service activated, 37% when passed
Drop placement: 44% in ducts, 30% direct buried and 26% aerial
ONT provisioning



ONT Provisioning Method Percent
Technician coordinates with provisioning
center when on-site
64%
ONT service profiles loaded in specific
ONT before dispatch
29%
ONT is activated on-site using ID code 7%
8 2012 Calix Proprietary and Confidential
FTTH Council Benchmarking
Installation Times
Average times for customer installation
Total installation time per sub in man-minutes: ~300 minutes
Travel time average: 81 minutes for two trips
Average number of trips to customer site: 2.1



On Site Installation Activity Time
Installing drop 101 minutes
Terminating and dressing fibre 39 minutes
ONT placement, powering, testing 43 minutes
Activating customer (details on next slide) 118 minutes
9 2012 Calix Proprietary and Confidential
Service Activation
Average Service Activation is 118 Minutes
Task % of Operators Minutes
Running new cable to home computers 93% 42
Installing landline telephone service 89% 27
Enabling data communication over
existing cable
68% 20
Checking on computer operation 64% 14
Installing set top boxes 64% 29
Enabling TV over existing cable 61% 22
Improving television service performance 61% 13
Installing new cable to televisions 54% 72
Installing a wireless router 46% 20