© 2005 Calix Calix Confidential & Proprietary Service Provide Issues and Trends Frank Wiener – Vice President, Field Marketing

2 © 2005 Calix Calix Confidential & Proprietary Calix C7 Multiservice Access Platform Enabling Services Expansion Any 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 Transformation Ubiquitous 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 INFORMATION, COMMUNICATION, & ENTERTAINMENT The integration of 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 TV Video on demand Music on demand Gaming It’s not just data anymore Internet access Directory services Content search services It’s not just voice anymore Phone services Instant messaging Video conferencing

7 © 2005 Calix Calix Confidential & Proprietary A Necessary Network Transformation Traditional Communication Services The network transformation strategy Physical  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 TDM Packet Class 5 Softswitch Internet Router POTS Only, POTS + DSL Lines DSL 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 Mbps, increasing to 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 Simplicity