What's the Story? Calix, Amazon and the big bad wolf of broadband

Calix is not keen on Amazon applying for Broadband Equity Access and Deployment (BEAD) funding.

In this podcast, Light Reading's Mike Dano explains why Calix CEO Michael Weening recently said that Amazon's BEAD strategy and Internet services make it "the enemy of every broadband provider out there" and that the hyperscaler is a "wolf in sheep's clothing."

"I thought that was pretty compelling," says Mike. "Usually, you don't have vendors calling out big companies as 'the enemy' of telecom."  

Amazon plans to use the BEAD funding to deliver Internet service through its Project Kuiper satellite Internet program.

"And like SpaceX's rival Starlink satellite Internet service, Amazon's Project Kuiper will also compete against the likes of established broadband Internet providers like AT&T, Verizon and Charter Communications for BEAD funding," reported Mike.

However, Louisiana is an example of a state that is already showing a preference to fiber providers as it didn't award any BEAD funding to satellite providers, Mike notes. Fiber is generally more reliable and a longer term investment than satellite service, he says, adding that it's easier to confirm that BEAD-funded fiber deployments are actually providing Internet to the states where they're installed, whereas satellite services could cover out-of-state areas as well.

"[Weening's] point was that Amazon is the enemy not just because they're going after BEAD money, but because they're also selling Internet services, they're selling in-home Wi-Fi, they're selling all these things that he thinks his customers ought to be making money from," Mike explains.

We also discuss why Calix's CEO said the broadband industry is at a crossroads and how the company's SmartTown Alliance is supporting regional Wi-Fi services.

"From his perspective, [Weening] did explain that telecom is at a crossroads," Mike explains. "He basically said that fiber providers are building fiber to millions of new locations, but that's not the important thing. It's actually how many customers they get to sign up to those fiber connections."

Related links:

Amazon's BEAD strategy shows it's 'the enemy,' says Calix CEO

With SmartTown Alliance, Calix Unites Broadband Providers To Share Network Access and Connect Subscribers Traveling Outside Their Markets

Helium, Xnet pivot from CBRS to Wi-Fi