XO Communications Expands Focus on Enterprise Market

XO Communications Expands Focus on Enterprise Market

New Enterprise Solutions Group, Enhanced Network, Expanded IP Solutions, and Targeted Guarantees to Drive Company's Expansion within Enterprise Market and Strengthen XO's Position as the Leading Alternative Provider for Enterprises

RESTON, Va., Oct. 8 -- XO Communications, a leading provider of 21st century communications for businesses and communications service providers, today announced new initiatives to expand its presence in the enterprise market. The initiatives, which include the formation of a new enterprise sales and support organization, an enhanced network, recently expanded IP service offerings and targeted guarantees, will enhance XO Communications' enterprise focus and further position the company as the leading nationwide alternative to today's incumbent telecom companies for enterprise customers.

"The initiatives announced today demonstrate XO's ongoing commitment to be a leading, major provider of nationwide network services to enterprises and will help to expand our presence in this critical segment of the telecommunications industry," said Tom Cady, president of XO Business Services. "We have a focused strategy in the enterprise market that is aligned with our unique strengths: a nationwide, award-winning high-capacity network, advanced IP and converged communications services, and a responsive, customer-focused orientation that the large service providers lack."

A Leading Alternative to Today's Telecom Incumbents

XO Communications' enterprise customer base has grown steadily over the past year as a result of the company's increased focus on this customer segment, the expansion of its network, and addition of new IP and high- bandwidth network services for enterprises. In addition, XO Communications has seen increased opportunities in the enterprise market as customers seek alternatives to today's incumbent telecom companies in the wake of industry consolidation. Today, XO Communications serves 50 percent of the Fortune 500 and manages complex and sophisticated networks for some of the nation's largest enterprises.

XO Enterprise Solutions Group

To spearhead the expansion within the enterprise market, XO Communications has created the Enterprise Solutions Group (ESG), its new nationwide enterprise sales and customer support organization. The XO ESG is focused on delivering cost-effective solutions to help enterprises gain efficiencies and improve performance of their existing networks and emerging applications. The group will leverage the unique capabilities of XO Communications' extensive nationwide and metro networks and IP networking solutions expertise to deliver end-to-end solutions and high-demand enterprise services including high-speed network access, MPLS IP-VPN, IP Telephony, and network infrastructure and transport solutions to key enterprise locations nationwide.

Leading XO's ESG is Tim Shaheen, who has been appointed vice president of enterprise sales. A telecommunications veteran with more than 17 years of experience, Shaheen comes to XO Communications from Ciena Corporation, where he was a director of enterprise and carrier sales. Prior Ciena, he held carrier and enterprise sales positions with Metromedia Fiber Networks and AboveNet.

According to Ted Chamberlain, Research Director, Gartner, Inc., "Communications services as we know it are undergoing a fundamental shift from legacy, proprietary based networks to IP based, fixed mobile convergence enabled services. Most large organizations will need to choose a communications provider who will not only be able to support tactical transitions to newer IP based communications services but will also be a change agent for communications enabled business process services."

Award-Winning, High-Capacity Network Enhanced for Enterprise Bandwidth Demands

With one of the industry's largest nationwide networks, XO Communications offers solutions with the proven performance to support the demanding high- bandwidth network requirements of enterprises. XO Communications has made significant investments in its inter-city network in order to expand its ability to deliver high-capacity network services for enterprises.

Recently, XO Communications completed an increase in the capacity of its core network by 200 percent, deploying an additional 800 Gigabits (Gbps) of capacity on major coast-to-coast routes across its nationwide 18,000 route- mile optical network, augmenting a capacity expansion completed last year which delivered 400 Gbps of capacity across its network. As a result of these investments to expand the capacity and capabilities of its network, XO received industry recognition for the Best Backbone/Core Network by winning the NXTComm Eos Excellence of Achievement Award.

Services and Solutions Expanded for the Enterprise Market

XO Communications has also expanded its IP services portfolio to support the requirements of larger businesses and enterprises with the launch of XO MPLS IP-VPN, XO SIP, XO One iPBX and IP Flex with XO MPLS IP-VPN. These recent enhancements to its IP services portfolio provide businesses and enterprises with more choices to converge data and voice communications over a single IP network infrastructure. With its expanded portfolio XO offers enterprises a comprehensive suite of advanced IP and networking services and solutions including:

* Data and IP Solutions: Enterprises can take advantage of the extensive
nationwide reach and dense metro coverage of XO's networking
capabilities, including a broad range of high-speed Internet access
options, MPLS IP-VPN, broadband wireless solutions, and Ethernet
services delivered over one of the most extensive nationwide Ethernet
service footprints.
* Network Infrastructure Solutions: XO offers enterprises a broad range
of metro and inter-city network solutions and optical networking
services, including collocation, private line and wavelength services
that provide the door-to-door delivery of customer traffic in key
enterprise locations nationwide.
* IP Telephony: XO can support enterprises most demanding voice and data
applications with a broad range of advanced IP Telephony solutions,
featuring XO SIP and XO One iPBX offerings as well as XOptions Flex,
the company's industry-leading VoIP services bundle, to support
enterprises remote office locations.

New XO 3 Guarantee

Supporting this enterprise growth strategy is the XO 3 Guarantee Program, which provides enterprises additional reasons to select XO Communications' suite of inter-city and metro network transport solutions, including XO Ethernet, IP Transit, and Wavelength services. Under the 3 Guarantee Program, XO Communications offers large enterprises best price, installation, and satisfaction guarantees for selected long haul and high-capacity network services.

For more information about XO Communications' enterprise services and solutions, contact an XO ESG representative by calling (866) 565-9696.

About XO Communications

XO Communications, a subsidiary of XO Holdings, Inc. (BULLETIN BOARD: XOHO.OB) , is a leading provider of 21st century communications services for businesses and communications services providers, including 50 percent of the Fortune 500 and leading cable companies, carriers, content providers, and mobile operators. Utilizing its unique and powerful nationwide IP network and extensive local metro networks and broadband wireless facilities, XO offers customers a broad range of managed voice, data and IP services in 75 metropolitan markets across the United States. For more information, visit www.xo.com.

CONTACT: Chad Couser, XO Communications, +1-703-547-2746, chad.couser@xo.com

Web site: www.xo.com/

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