Press Release

Occam Networks Arms Central Scott Telephone with New Revenue Opportunities through Network Upgrade and Competitive Overbuild

Network Upgrade in ILEC Service Area Enables Central Scott to Offer New Broadband Services, GPON Solutions Ensure Central Scott Outperforms Competitors in Quad Cities Area

SANTA BARBARA, Calif. – May 18, 2010 – Occam Networks®, Inc. (Nasdaq: OCNW), a leading broadband access supplier offering multiservice access platform (MSAP) solutions based on pure packet technologies, announced today that Central Scott Telephone, headquartered in Eldridge, Iowa, has deployed Occam solutions in two significant upgrade projects.  Central Scott is now unlocking new revenue streams as a result of upgrading its existing DSL network to improve the quality of current voice and data services as well as future video services to be offered.  It is also completing a competitive fiber overbuild to make advanced services available to the neighboring Quad Cities area.

Occam solutions replaced an existing unreliable, non-carrier grade Ethernet ring that served Central Scott’s three exchanges, but lacked the capacity and flexibility to handle the VoIP service Central Scott introduced.  The provider also had limited fiber facilities in its CLEC territory in Bettendorf and Davenport, Iowa, requiring it to lease capacity from other carriers to reach customers.  After curing these quality issues, Central Scott expanded its services to include unserved areas, offering access speeds to its business customers of over 100Mbps for some.

“Running VoIP over the older Ethernet ring did not provide the quality of service we needed to offer our subscribers.  Occam’s BLC 6000 MSAP provided the reliability and ease of operation that helped us increase revenues in our existing coverage area,” said Butch Rebman, President and COO of Central Scott Telephone.  “We are able to leverage Occam’s 1Gbps ring capabilities to offer high-quality VoIP and Ethernet services affordably.”

Central Scott then built on these successes by completing a competitive overbuild into the Quad Cities area, home to more than 300,000 potential subscribers.  Given the population density of the area and consumer demand for increased broadband capacity, Central Scott chose to deploy GPON service in Occam’s BLC 6000 MSAP and began offering 4-5Mbps service, effectively positioning themselves against their local competitors.

In addition to focusing on consumers, Central Scott is serving the area’s anchor institutions, such as schools and government, as well as networking several medical facilities with connections as fast as 100Mbps.  These new rings are connected to Iowa Network Services (INS), an organization of 127 independent telephone companies that operates a statewide fiber optic network.

“When Central Scott first started working with Occam, they relied on our equipment, experience and expertise to address the immediate business need of improving the reliability of their DSL network,” said Juan Vela, Director, Solutions Marketing and Strategy for Occam Networks. “As the partnership grew, Central Scott gained confidence in Occam’s ability to first extend services into previously unserved areas, and then overbuild into the Quad Cities, which has significantly increased their subscriber base and revenues.”  

About Central Scott Telephone

Central Scott Telephone was founded in 1902 and focuses on keeping subscribers “in touch with tomorrow.”  The company serves 5,000 customers and employs nearly 20 people.  In addition to voice and data services, Central Scott offers WiMax and wireless data services, and also serves as a mobile phone distributor.

About Occam Networks, Inc.

Occam Networks' broadband access solutions empower service providers to offer profitable new voice, data and video services over copper and fiber. Occam systems deliver flexibility and scalability in a Triple Play world. Over 3 million BLC 6000 ports are currently deployed at over 350 service providers worldwide. For more information, please visit www.occamnetworks.com.

Cautionary Note About Forward-Looking Statements

Portions of this press release may contain forward-looking statements regarding future events or the future performance of Occam Networks, including statements predicting increased adoption of products and technologies offered by Occam and the willingness and ability of our customers to purchase additional Occam products and upgrade their product offerings. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from any future performance suggested in such statements. In particular, rapidly changing technologies and market conditions may require changes to Occam's products, and the willingness of our customers to purchase upgraded products such as Triple Play will depend in part on customers' existing network configurations and any incremental costs associated with implementing upgrades. Occam does not undertake any obligation to publicly update any forward-looking statements as a result of new information, future events or otherwise. Please also refer to the company's most recent quarterly report on Form 10-Q, annual report on Form 10-K and other filings with the SEC. These filings contain and identify other important factors that could cause actual results to differ materially from those contained in any forward-looking statements.

Occam Networks and Occam BLC 6000 are either registered trademarks or trademarks of Occam Networks, Inc. in the United States and/or other countries. 

All other trademarks mentioned are the property of their respective owners.

# # #

Occam Networks and Occam BLC 6000 are either registered trademarks or trademarks of Occam Networks Inc. in the United States and/or other countries.

All other trademarks mentioned are the property of their respective owners.