- Growing Network Provides Enterprise and Carrier Customers with Cost-Effective and Scalable Ethernet Access and Alternative to Costly Special-Access Services
HERNDON, VA – September 14, 2010 – XO Communications (OTCBB: XOHO) today announced that it has expanded its Ethernet over Copper (EoC) network by more than 30 percent, increasing the company’s coverage in 39 existing markets and launching availability in Charlotte, N.C., Buffalo and Rochester, N.Y. This growth is due to XO Communications’ recent deployment of new EoC-enabled local service offices (LSOs), bringing its count to more than 400 LSOs across the U.S.
XO Communications’ increased EoC network footprint further demonstrates the company’s commitment to providing its enterprise and carrier customers with a high-bandwidth connectivity solution that circumvents the cost and availability challenges of fiber. While fewer than 5 percent of all businesses in the U.S. are connected via fiber (New Paradigm Resources Group, 2010), the XO EoC network alone reaches more than 1 million businesses. In fact, the XO EoC network footprint far exceeds the coverage of even the largest Ethernet service providers, many of which are limited to their fiber networks and reach only a few thousand buildings. In addition, by bonding copper pairs, XO Communications enables customers to scale their delivered bandwidth in cost-effective increments from 3 Mbps up to 20 Mbps.
The expanded EoC network further affords carrier customers looking for viable local loop alternatives – a search driven by the recently announced ILEC special-access rate increases – the ability to transition to more scalable and cost-effective Ethernet technology. Rather than adding additional T1 lines – and, as a result, dramatically increasing network costs – carriers can now incrementally increase their capacity as customer demand for bandwidth grows.
This growing customer demand is also significant in light of the recent FCC report (FCC Sixth Broadband Deployment Report, July 2010) that determined T-1 (1.5 Mbps) is no longer considered broadband service, and therefore insufficiently meets the bandwidth needs of customers in the U.S. With the broadband standard now defined as 4 Mbps downstream and 1 Mbps upstream, EoC-based services provide carriers with the speed and reliability required for using today’s bandwidth-intensive broadband applications and services.
“The business case for EoC technology is stronger than ever. This solution addresses our enterprise customers’ needs for more access bandwidth to sophisticated services by combining the advantages of Ethernet with the reach of copper lines, which now touch a majority of U.S. businesses,” said Randy Nicklas, Chief Technology Officer at XO Communications. “Beyond these benefits for business customers, our carrier customers can leverage EoC to meet multiple business objectives – from entering new markets and attracting new customers to selling higher-value services into their existing client base.”
Nicklas expects carrier response to this expansion will be positive, especially as many service providers continue to seek more cost-effective alternatives to special-access services. “With market dynamics constantly fluctuating and special-access rates on the rise, EoC continues to be a stable and reliable option,” he added.
“Our team continues to identify and invest in new ways to remain at the forefront of the Carrier Ethernet market, and the telecommunications industry as a whole, by offering accessibility, flexibility and premium service – be it in the form of continued network expansions, service guarantees or cutting edge services,” said Nicklas.
About XO Communications
XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO), is a leading nationwide provider of advanced broadband communications services and solutions for businesses, enterprises, government, carriers and service providers. Its customers include more than half of the Fortune 500, in addition to leading cable companies, carriers, content providers and mobile network operators. Utilizing its unique combination of high-capacity nationwide and metro networks and broadband wireless capabilities, XO offers customers a broad range of managed voice, data and IP services with proven performance, scalability and value in more than 75 metropolitan markets across the United States. For more information, visit www.xo.com.
Cautionary Language Concerning Forward-Looking Statements
The statements contained in this release that are not historical facts are “forward-looking statements” (as such term is defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties. These statements include those describing our expectations concerning the response of carriers to our network expansion. Management cautions the reader that these forward-looking statements are only predictions and are subject to a number of both known and unknown risks and uncertainties, and actual results, performance, and/or achievements of XO Communications may differ materially from the future results, performance, and/or achievements expressed or implied by these forward-looking statements as a result of a number of factors. Other factors to consider also include the risk factors described from time to time in the reports filed by XO Holdings, Inc. with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2009 and its quarterly reports on Form 10-Q. XO Holdings, Inc. undertakes no obligation to update any forward-looking statements, except as otherwise required by law.
Media Contacts
Courtney Harper
Reputation Partners (for XO Communications)
(312) 819-5722
courtney@reputationpartners.com
Lynn Sheka
Reputation Partners (for XO Communications)
(312) 447-2575
lynn@reputationpartners.com
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