1. The Changing Landscape of Communications Service Providers May 1, 2012 – WSTCA Spring Conference

2. Fishing in Florida A Change in Landscape

3. Industry Landscape Broadband coverage National Broadband Plan: 100Mbps to 100M homes Competitive pressures keep pricing down Underserved markets remain a regulatory focus Connect America Fund: 4 x 1 Broadband Seven million homes needing upgrade Statistics from Oct 2011 FCC report on Internet Access Services

4. Connect America Fund Regulatory The Connect America Fund was established to meet that need 18.8 million Americans do not have access to broadband

5. Connect America Fund Obligations The Connect America Fund (CAF) Must provide 4/1 Mbps Internet and voice service to any subscriber reasonably requesting service Timeframe for providing this service is flexible Replace existing high-cost support mechanisms over time Annual reporting, subject to audit Will continue as an operating subsidy, not a capital fund as originally proposed in the National Broadband Plan

6. Content The Cloud

7. Examining Usage Rogers Wireless Mobile data tiers based on usage caps Voice unlimited evenings and weekends Unlimited social networking AT&T Tiers based on speed Usage caps announced but not published or enforced Plusnet Tiers based on usage caps Unlimited off peak data Plusnet Pro: QoS add-on prioritises pre-defined traffic classes Telecom New Zealand Tiers based on speed & usage caps Overage: down-speed or overage fee TiVo downloads zero-rated

8. Macro Trends

9. Ubiquity Netflix Game ConsolesBlu-Ray PlayersHDTVsStreaming Players Home Theater Systems Phones and Tablets

10. Partnerships

11. Quality of Experience

13. Customization

14. Strategies for a Changing Landscape

15. Consumers Demand Availability

16. Coverage Will Require Creativity Home / Office SMB MDU Base Stations + Hospital Content Fixed Broadband Wireless Broadband

17. Consumers Demand Variety ContentDevices

18. Consumers Demand Quality

19. Personalize to Your Market http://www.calix.com/compass/flow_analyzer/c alix_us_rural_broadband_report_download.ht ml

20. Consumers Demand Control

21. Summary Creative solutions will leverage the latest technologies VDSL2 will be a key enabler to providing availability and coverage Low density, line powered, easily deployable DSLAMs Quality of Experience can set you apart Make your products more visible and easier to get Leverage your presence in the community Give consumers what they want Broadband at home / work, on the go, in the community centers…. High quality, personalized services they can control Monetize the broadband experience Understand your customer’s usage patterns, service preferences and give them the tools to control what they spend Set up a SW environment that enables / monetizes the experience

22. The Leader in Access Innovation Your partner in network transformation Largest telecommunications systems vendor focused solely on access Innovative. Global. Focused. A Unified Access portfolio Leader in advanced broadband access North America’s fiber and multiservice access leader Industry’s leading interoperability program SW services that manage the broadband experience A partner you can count on Over 1,000 customers in 40+ countries and territories $2.5 billion+ in deployed systems Financial strength, no debt, cash generating Consultative. Aligned. Trusted.

23. Questions?