- Calix Continues 24-Year Leadership in US Rural Broadband by Expanding Strategy To Include American Manufacturing, Ensuring Full Participation in the Broadband Equity, Access, and Deployment (BEAD) Program
- Calix and its strategic manufacturing solutions provider, Jabil, join with government leaders, including US Assistant Secretary of Commerce Alan Davidson and Michigan Lieutenant Governor Garlin Gilchrist, to unveil the details of its strategy to meet Build America, Buy America (BABA) requirements by manufacturing critical broadband hardware systems from the unique US-built Calix software and cloud platform at Jabil’s facility in Auburn Hills, Michigan
The Biden Administration and the US Congress have provided funds for investing in manufacturing in America. This news comes as a result of some of that investment. It links the goal of providing broadband access for all Americans with another goal of building American manufacturing.
Calix Inc. affirmed its commitment to “Build America, Buy America” (BABA) for the Broadband Equity, Access, and Deployment (BEAD) program during a special event held at a manufacturing facility in Auburn Hills, Michigan, operated by Jabil Inc. This commitment includes expanding a manufacturing services agreement with Jabil at its Michigan facility. Calix was joined by government leaders United States Assistant Secretary of Commerce Alan Davidson and Michigan Lieutenant Governor Garlin Gilchrist.
Calix was founded in the United States (US) 24 years ago with an exclusive focus on enabling rural broadband service providers (BSPs). Over the past 12 years, Calix has invested $1.2 billion to build the only end-to-end software and cloud broadband platform, further establishing the company as the leading technology partner to rural BSPs across the US. Calix has more than 1,300 active US customers and nearly 100 percent serve rural markets, where they are leading the way to close the digital divide. The decision to move manufacturing to the US will ensure that Calix customers can leverage the BEAD program to meet this objective—and it will create new, high-value manufacturing jobs nationwide by building on decades of US-led innovation across Calix Cloud®, software, and systems.
With an initial investment from Calix of $4 million to $6 million and an ongoing spend for operations of $10 million to $15 million per year, Calix manufacturing solutions providers will hire workers in manufacturing, operations, engineering, quality assurance, and administrative roles as they ramp US production of Calix optical solutions—a first step in the company’s BABA initiative. The ongoing collaboration with these manufacturers will create more than 100 American jobs, with additional jobs planned as Calix customers participate in the BEAD program over the next five to 10 years.
Calix has longstanding partnerships with three manufacturing solutions providers: a five-year partnership with Jabil, an eight-year partnership with Gemtek, and a 10-year partnership with Hisense Broadband. The manufacturing services agreements between Calix and these providers reflect the following:
- Jabil will produce optical network terminals (ONTs) and optical line terminals (OLTs) in Michigan
- Gemtek will produce ONTs at its California facility
- Hisense Broadband will produce optical modules at its New Jersey facility
Quotes from leaders involved:
“We founded Calix 24 years ago in the US by focusing on and partnering with US rural broadband providers as they innovated to close the digital divide,” said Calix Chairman Carl Russo. “Cooperatives, tribal and community-owned, family and community run, and private equity-backed local broadband providers are the lifeblood of rural America, and we appreciate the opportunity to partner with federal and state leaders on broadband programs that help them expand the great work that they do every day. In doing so, they have created tremendous value for underserved communities across the US as our America-led software and cloud innovation in broadband has enabled even the smallest BSP to thrive and provide the essential broadband services that enable economic growth, education, health, and safety. Calix, our customers, and our partners are tremendously thankful to the National Telecommunications and Information Administration (NTIA) and the Commerce Department for their leadership in ensuring that we can deliver world-class broadband and life-enhancing managed services to every citizen and local business. More importantly, they are doing it through a program that will help us meet this objective through Calix America-led software and cloud innovation while contributing to America’s manufacturing renaissance.”
“President Biden’s Investing in America agenda and commitment to ‘Made in America’ is driving a resurgence in manufacturing across the country,” said US Secretary of Commerce Gina Raimondo. “Today’s announcement is more evidence that we can close the digital divide and connect everyone in America to high-speed internet networks built by American workers with American-made equipment.”
“The ‘Internet for All’ initiative is not just a connectivity program; it’s a jobs program—for the people who build the networks and for the people who make the equipment those networks need,” said US Assistant Secretary of Commerce for Communications and Information and NTIA Administrator Alan Davidson. “If network equipment can be made in America, it should be made in America. Companies like Calix are stepping up and answering that call.”
“Jabil is excited to join Calix in supporting the BEAD program while bridging the digital divide to bring critical broadband access to those who need it most,” said Jabil Executive Vice President of Operations Gerald “JJ” Creadon. “As a global manufacturing solutions provider, we have a presence in 30 countries and more than 100 facilities, yet Jabil was founded less than 30 miles from this state-of-the-art factory in Auburn Hills. We are extremely proud to ramp production of Calix’s industry-leading platforms here in Michigan, incorporating the latest automation and process technologies to accelerate the delivery of Calix’s industry-leading broadband-access equipment.”