Amazon Just Applied for BEAD. Experience Providers Will Crush Them.

Here are highlighted quotes from Tom Maguire’s presentation at ConneXions 2024:

In the Aftermath of Hurricane Helene, We Launched SmartTown To Support Our Communities:

“Hurricane Helene hit our service areas, leaving a path of devastation and destroying our network. As our crews worked around the clock to restore service, we opened up our central offices, setting up charging stations and GigaSpires Wi-Fi hot spots for residents to use to contact their family members and friends. We also deployed SmartTown to support a community event outside of the restoration area. This not only helped this particular community, but it also allowed us to send techs to areas where they were needed most. Calix helped us to offer immediate solutions to a number of different issues, while other providers lagged in providing options or services. I think this is a perfect example of how we differentiate ourselves and create a better experience for our customers by deploying products like GigaSpires and SmartTown.” 

How the Simplicity of the Calix Platform Keeps Cost Per Prem Down

“The sort of agility and simplicity that Calix brings to the table allows us to keep our cost per prem down. Our cost per prem is under $650, about $633 or so, which is pretty phenomenal. We are a new kind of internet service provider, disrupting how things have always been done with a fresh approach to giving customers what they need, when they need it. How do you create a network that offers simple, straightforward service that customers can install themselves? How do you create a more reliable network that eliminates truck rolls for installations and repairs?”

Launching 2 Gig Service in Just 30 Days With Calix

“The innovation from our partners at Calix, like the cloud platform, enables us to quickly scale modernization and system upgrades, like the launch of our 2 Gig service across our network, in weeks rather than months or years—making our fiber network resilient and sustainable for decades. This is the agility we need.”

Here are highlighted quotes from Marcus Bott’s presentation at ConneXions 2024:

Increasing ARPU by 40 Percent With Security Bundles

“We just rolled out some new bundles, with Bark and Arlo. And in that first month, we blocked over 27,000 threats. We were pretty impressed with that number. It's a lot higher than we expected. The other added benefit of these products is we also are seeing a 40 percent increase in ARPU on them.”

Transforming With Experiences For Subscriber Stickiness

“Traditionally in the telephone world, you have a point of demarcation where you'd prove your network. Everything past that was on the subscriber to worry about. Our subscribers are fairly sticky, but we still care about the experience they have. We want our subscribers to like us not because we're their only choice, but because we're still a good choice. And that kind of that transformation has continued with Calix as a great partner.”

Pinpointing New Markets To Beat Competition With Calix Engagement Cloud

“The analytics and the insights that we got [from Engagement Cloud] helped us learn things we didn't know about our subscriber base. We're in some pretty rural markets, and most of our subscribers are 65 years old or older. We've learned there are some markets in there that we haven't served. It’s helped us to be more flexible.”

Here are highlighted quoted from Brad Moline’s presentation at ConneXions 2024: 

Working With Calix To Take Business Market Shares From the Incumbent

“What we've found is we get 60, 70, 80 percent blended market shares that we've taken from the incumbent—and all of a sudden, we started to see our churn go down. With our partners at Calix, I like to say they're stakeholders in our company because we work together on new products at a high level. It’s this partnership that helps us identify the right products to go after competition—and win.”

Getting Two-Thirds Market Share By Focusing on Security

“Everybody needs cybersecurity and, our price points are right with Calix as a solution. Security is so important to us—it's now an automatic deal. We make new [business] subscribers sign that we offered them security—and they chose not to take it. I believe we can get 50 percent of our incremental subscribers to take cyber protection. Security is our responsibility. It ties into what we do—building a moat around our communities. We’re getting about two-thirds market share and stopping over five million threats this year. I’m excited about that.”

Adopting SmartBiz™ Keeps Our Churn Down

“We got into residential largely because the cable companies got into voice. And so we knew it was game on—and it was time to go. One of the things that's helped us is we have a full product stack [with SmartBiz]. It keeps our churn down.”

Here are highlighted quotes from Matt Bueltel’s presentation at ConneXions 2024:

Growing the MDU Market Like Crazy by Building Products Together

“We service everything from duplexes all the way up to million-dollar multi-thousand-square-foot penthouses. And it's not one size fits all. We really appreciate the Calix [MDU] offering and the fact that we can have all the hardware and software that can support all of those needs. We need flexibility in the hardware stack and all the different form factors Calix has brought to market, as well as the software stack and the different networking and protection needs that the property has.”

Launching a New Property Smoothly From Day One

“When we launch a new property, we go through their entire property and rewire everything. It’s paramount to have that go as smoothly as possible. We really appreciate the relationship with Calix to be able to accomplish that. When residents move into an MDU today, they want their internet right away. With Calix, it has to be easy to onboard. By permanently installing Calix routers in each unit, it allows us to service that resident from day one.”

Doubling Sales, Reducing Support Calls by 60 Percent, and Maintaining a 99.9 Percent Retention Rate

“With our new relationship with Calix, we've been able to permanently deploy routers in the units we sell to.  Now 92 percent of all subscribers want our managed Wi-Fi product after we pitch it to them. With all that, we've been able to more than double the size of our sales in the past year. We’ve also maintained a 99.9 percent retention rate. We’ve seen a 60 percent reduction in support calls, too. That’s absolutely amazing.” 

Here are highlighted quotes from Scott Hendrix and Carla Shearer, who presented together at ConneXions 2024:

Connecting Subscribers Anywhere With SmartTown
 

Protecting Communities Because We Care

“SCTelcom is all about life more connected. We have built on those original coop principles using progressive technologies to advance our position in the network further into the homes, businesses, and the communities. It's not just a tagline. We have leveraged the SmartLife portfolio to do those things.” — Carla Shearer

“Members, customers, and subscribers know we care about them, and that's what I think differentiates us. We care about community. We're all on the same page because we care. Calix cares. Nine schools, 13 towns, and a hundred first responder organizations. For these first responders, there’s a 54 percent chance that they’ll be showing up to a Tombigbee customer’s home. That’s a 54 percent chance of saving a life and I'm very proud that we partnered with Calix to offer that program free.” — Scott Hendrix

I have been calling out the Amazon threat for years. Anyone who watched my ConneXions 2023 keynote (which can be seen here at the 7:40 mark) heard me outline their strategy. A broadband provider who uses eero will quickly become a dumb pipe as Amazon owns the direct relationship and data.
 

Fox in the henhouse, wolf in sheep’s clothing—pick your analogy—but know that their true motivation should now be clear when Amazon eero became your direct competitor by applying for BEAD in Louisiana with satellite.
 

Are there some legitimate use cases for satellite? Yes. However, we also recognize the constraints of satellite (as Carl Russo pointed out four years ago). The fact remains: Direct satellite broadband coming from multiple providers, including Amazon, is a threat. If eero is in the house, a quick swap of the WAN port via a low-cost satellite install will be easy.
 

They are coming—and they are fierce. I know that I am a very happy Amazon customer. At Calix, we benchmark Amazon eero numerous direct-to-consumer experience offerings for these three reasons:

1. eero was a good potential partner until Amazon bought them. Now they will hurt your NPS. eero has good basic Wi-Fi, which they are expanding into multi-dwelling units (MDUs) and small businesses (direct). When that Wi-Fi works well, all the brand benefits go to Amazon eero. When something goes wrong, the broadband provider connected to the eero is blamed and takes a negative hit on their Net Promoter Score℠ (NPS®).
   
   
2. Amazon is a multi-trillion-dollar company with a direct relationship with subscribers. Broadband is another way to expand their direct relationship. Ring and their Sidewalk IoT network already uses YOUR bandwidth to compete, covering over 90 percent of the US. Along with the mobile virtual network operator (MVNO) threat, these were all harbingers of their moving into BEAD.
   
   I recommend you check out the Amazon Sidewalk network coverage via Ring and your network investment (here). How do you make money or improve your subscriber’s experience? You cannot.
   
   
3. Amazon is innovative and will continue to raise the experience bar. They just launched outdoor Wi-Fi, available on Amazon.com. Amazon now has Ring cameras, doorbells, security, MDU, small business, and eero (indoor and outdoor). eero is offering backyard Wi-Fi at the pool, shop or treehouse. Are you?

Our team is here to help your team build out your experience-based sales and marketing plan now. If you are not getting the assistance you need, please email or message me on LinkedIn, and I will ensure our team moves quickly.


Net Promoter®, NPS®, NPS Prism®, and the NPS-related emoticons are registered trademarks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld. Net Promoter Score℠ and Net Promoter System℠ are service marks of Bain & Company, Inc., Satmetrix Systems, Inc., and Fred Reichheld.