Calix (NYSE:CALX) used the final day of its ConneXions event to emphasize artificial intelligence, customer experience and network simplification as central priorities for broadband providers navigating intensifying competition.
President and CEO Michael Weening told attendees that “there is no version of the future where AI is optional,” urging providers to move quickly while choosing partners with the financial resources and security capabilities to support long-term deployments. He cautioned against allowing small, unproven AI vendors to proliferate across businesses without adequate controls, citing Calix’s own decision to halt some early experimentation in favor of working with larger enterprise partners.
“If you don’t get on board with the people who are putting hundreds of millions of dollars behind putting security, trust, and making it predictable,” Weening said, providers risk being left behind. He said Calix expects to have more than $200 million in resources this year to support trust, security and predictability, and he positioned 2027 as a pivotal year for expanding the company’s competitive advantage.
Network simplification and growth opportunities
Weening said Calix is pursuing a strategy of helping broadband providers reduce operating costs while increasing revenue. He highlighted the company’s E9-2 platform, which he said can consolidate access aggregation, broadband network gateway and other functions into a single system, reducing the number of network elements, power consumption and required operating teams.
He challenged providers to “kill the BNG” as a standalone box by 2027, arguing that a simplified architecture could reduce equipment purchases and create resources for subscriber acquisition, marketing and churn reduction.
Weening also highlighted opportunities in managed Wi-Fi, small business, multi-dwelling units and community connectivity. He said Calix’s SmartMDU offering is designed to extend management from network access through building-wide Wi-Fi and connected amenities. The company’s strategy, he said, is to prioritize customer requests that either drive revenue or lower costs.
In addition, Weening described Workflow Studio as a tool for providers to map business processes and identify where AI agents can automate tasks. He said businesses must first understand how their operations currently work before attempting to change them with AI.
Survey points to elevated switching risk
Chief Marketing Officer Juergen Lindner shared findings from Calix’s second annual subscriber switching study, conducted with DC and Gather. The survey included 2,600 internet decision-makers across rural, suburban and urban markets and multiple generations.
- 16.1% of respondents said they had changed internet providers within the prior 12 months, a 6.2% increase from the previous year.
- 48.9% said they were actively considering a change in service.
- 93% said they were happy with their current provider, a result Lindner said could create a false sense of security because satisfied customers may still leave for a better offer.
- Switching in rural markets increased by roughly 10%, while switching in the Midwest nearly tripled, according to Lindner.
- Between 3.5 million and 4 million subscribers changed to 5G during the prior year, he said.
Lindner said price and speed remain table stakes, but streaming bundles, smart-home capabilities, personalization, security, network availability and customer service can influence loyalty. He also pointed to Gen Z as a particularly vulnerable customer segment because it has less inherent loyalty to providers.
“Your customers are not leaving you because they are mad with you,” Lindner said. “They’re going for better at the current time.”
Behavioral economics and marketing
Behavioral economist Melina Palmer, founder of The Brainy Business, encouraged providers to frame offers around customer outcomes rather than technical terms such as symmetrical connectivity or megapixels. She said the language used to describe an offer can affect its perceived value.
Palmer advised attendees to use clear, consistent messaging across channels and to identify what longtime customers would miss if the provider disappeared. She also discussed “anchoring,” or presenting a higher-priced option first to make a target offer appear more attractive. Her recommendations included creating a higher-priced “wingman” product that supports the value of the preferred offering.
“When you change the words, you change the value,” Palmer said.
Providers share operating results
Several Calix customers described their growth strategies and experience-focused approaches. Greg Mullis, chief operating officer of Georgia-based Tri-CoGo, said the fiber provider has reached 11,000 customers, a roughly 50% take rate and a 50% gigabit-service take rate. He said Tri-CoGo’s net promoter score has risen from 90 to 92 over the past three years and that it became cash-flow positive two years ahead of plan.
Tri-CoGo recently introduced five new plans, including ProtectIQ for new accounts, higher-tier experience offerings and multi-gig Wi-Fi 7. Mullis said the company increased average revenue per user by about $0.75 over five months and achieved an approximately 11% take rate for its 4-gig product, compared with a 5% budgeted rate.
Darren Farnan, general manager of United Fiber, said the company serves more than 45,000 subscribers and has used managed Wi-Fi, outdoor Wi-Fi and SmartBiz small-business services to expand its service model. He said SmartBiz revenue grew 125% year over year, crediting internal alignment and employee ownership of the offering.
Milton Lopera, chief customer officer of Blue Stream Fiber, said the company serves 150,000 subscribers across 500 communities, primarily in Florida and Texas, with plans to expand into Alabama and Georgia. He said Blue Stream has achieved a 4.9-out-of-5 installation experience rating across its MDU communities, a 90% reference rate and a 99.5% renewal rate for contracts that typically run eight to 10 years.
Other discussions focused on AI-enabled partner workflows. Rachel Solomon, CEO of Wecom Fiber, said 80% of her company’s orders flow from checkout to technicians without human intervention. Timothy May, CEO of Direct Communications, said his company views AI as a tool to augment employees rather than replace them.
Calix executives closed the event by arguing that AI adoption requires both technology and human judgment. Chief Customer Officer Nancy Tichbon described the formula as “AI plus PI equals ROI,” with PI referring to people intelligence. Chief Operating Officer John Durocher urged attendees to use AI in ways they can trust, describing security, predictability and actionability as necessary elements for sustainable adoption.
About Calix (NYSE:CALX)
Calix, Inc provides cloud, software and broadband access solutions to communications service providers. Its technology helps broadband operators deploy, manage and monetize high-speed internet and related services for residential and business customers.
The company’s offerings include broadband access systems, subscriber premise equipment, cloud-based software and analytics, and managed services. Its portfolio supports fiber, fixed wireless and other broadband networks, while enabling providers to deliver services such as Wi-Fi management, network security, connected home applications and business connectivity.
Founded in 1999 and headquartered in San Jose, California, Calix serves broadband service providers primarily in North America, with customers and operations in other international markets.
