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Calix Picks Up FDN Deal

Calix Inc. (NYSE: CALX) says it has signed a deal with the Florida CLEC FDN Communications by which it will outfit 170 of the carrier’s central offices with its C7 multiservice access boxes.

Calix would not divulge the exact number of C7s being shipped but said many of the FDN central offices would require several boxes.

The C7 can range from a base of around $25,000 upward to $100,000 for a fully loaded platform, depending on how it's configured. So if Calix sold 250 boxes for 170 offices -- the deal could be worth somewhere between $5 million and $15 million to start.

FDN will use the new gear to support standing offerings like POTS, DSL, and T1 private lines, and to introduce new services like Gigabit Ethernet and VOIP later on, says FDN CTO Matt Blocha in a statement.

Blocha did not return calls for comment Monday.

Calix marketing director Dave Russell says his company began the FDN deployment last fall. The vendor expects revenue from the deal to hit its books in the third quarter. (See LR Names Top Ten Privates.)

FDN, like many CLECs, is retooling itself to survive in a post-UNE-P environment, Russell says. The carrier previously had relied on BellSouth Corp. (NYSE: BLS) access lines (and access equipment) to reach its customers, but regulatory changes last summer relieved ILECs from making those facilities (unbundled network element platforms) available. (See FCC Zaps Broadband Carriage Regs and Supremes Sing Cable's Praises.)

Many CLECs have begun to lease those RBOC access lines in order to continue serving customers. But the CLECs must own their own access equipment, Russell explains. FDN will collocate the Calix equipment in central office space alongside the BellSouth access equipment, he says.

Russell says CLECs are either going out of business, or they are developing new service offerings like VOIP and IPTV.

And with good results, he notes. "What we saw after the bubble burst was that many of these businesses just kind of went away," he says. "But now what we are seeing is that many of these CLECs are kind of reinventing their business plans and are actually doing reasonably well."

Russell says Calix expects to see increasing business from CLECs like FDN.

FDN operates 250,000 access lines and has roughly 70,000 business and residential customers in the Southeast.

— Mark Sullivan, Reporter, Light Reading

jackall 12/5/2012 | 3:47:31 AM
re: Calix Picks Up FDN Deal
Maybe they'll use it to settle the loans they made to there sucker employees.
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