XO Communications

 XO Communications is once again defining its leadership in IP services with new enhancements to its business services portfolio and the unveiling of a new, groundbreaking pricing concept that simplifies how businesses can buy and scale IP services to support their communications needs.Under its new XO IPfolio, XO Communications is making several significant enhancements to IP services offerings, including the launch of XO IP Flex, the nationwide availability of XO SIP, and the introduction of the industry’s first bandwidth-based pricing offering for converged IP services. The new XO IPfolio gives businesses and enterprises a broad range of IP convergence and networking service options, including XO IP Flex, XO SIP, XO One iPBX, XO MPLS IP-VPN, and XO IP Flex with VPN. In addition, the XO IPfolio introduces a unique and simplified pricing concept for businesses to better manage the consolidation of their voice and data networks over a single IP infrastructure.

“XO led the industry with innovative voice and data convergence solutions when it offered the first flat-rate, integrated communications bundle on a single bill in 2000,” said Tom Cady, president of XO Business Services. “With IPfolio, we continue that leadership by providing businesses with a comprehensive suite of advanced IP and networking services and solutions with a new pricing paradigm based on IP bandwidth, not lines. Bandwidth-based pricing is about more than cost, it’s about creating a model that makes business sense in an IP world.”

XO Changes the Pricing Paradigm for Converged IP Services

XO Communications is the first major nationwide service provider to offer an innovative pricing concept for converged IP services that eliminates pricing based on the number of voice lines. Unlike other approaches to IP pricing that still are based on traditional TDM services pricing models, XO’s bandwidth-based pricing acknowledges that voice is simply another application on the IP port and offers rates based on the size of the port, not on the number of voice lines. Customers simply select an IP port speed from 1.5 to 45 Mbps, a calling plan and any additional features. Because voice is just another application on the IP port, customers pay nothing for incremental lines or voice channels provisioned within the port speed they have with their service. This innovative and unique bandwidth-based pricing is now being offered with XO IP Flex, XO IP Flex with VPN and XO SIP.

“XO Communications’ bandwidth-based pricing for converged IP services is a truly unique concept in the industry,” said William Stofega, research manager with IDC. “By removing the complexity of buying IP services with simplified pricing and offering a broad portfolio of services, XO is helping businesses make the transition to a converged IP environment much easier.”

XOptions Flex Upgrades to XO IP Flex

XO Communications today announced the launch of XO IP Flex, a new converged IP services bundle that upgrades and replaces XOptions Flex, XO’s industry-leading VoIP services bundle. XO IP Flex extends XO’s VoIP services to larger business customers by offering new higher-speed bandwidth options including 4.5 Mbps and 10 Mbps, leveraging XO’s robust Ethernet capabilities. XO IP Flex works with existing phone systems and offers a number of standard features, including:

• More than twenty standard voice features including voicemail, caller ID, call waiting, call forward, three-way calling, and one toll free number;
• Dedicated Internet Access with Dynamic Bandwidth Allocation
• Unlimited local calling
• Unlimited site-to-site calling for multi-location customers with IP Flex, IP Flex with VPN and XO SIP locations
• Long distance calling with choice of calling plans
• Online Feature Management through the XO Business Center
• Optional features, including Auto Attendant, Call Center, Account Codes and Voice Virtual Private Network.

XO SIP Nationwide Launch

Now available nationwide, XO SIP delivers converged voice and data services to businesses with IP-PBX systems over a single, high-speed IP connection. XO SIP is a fully integrated solution designed to support the needs of businesses with the most demanding voice and data applications at single locations or multiple locations nationwide. Session Initiation Protocol uses a native IP-based facility to manage all traffic between a customer’s IP-PBX system, the XO IP network, and the Public Switched Telephone Network. The service provides greater efficiencies by eliminating the need for businesses to maintain multiple access facilities for voice and data services and eliminates the need for bandwidth-consuming protocol conversions, thereby, simplifying the overall deployment and management of customers’ enterprise IP telephony services.

XO SIP includes a broad range of bandwidth options to maintain optimal network performance. XO SIP features include:

• More than twenty standard voice features including voicemail, caller ID, call waiting, call forward, three-way calling, and one toll free number;
• Dedicated Internet Access with Dynamic Bandwidth Allocation
• Unlimited local calling
• Unlimited site-to-site calling for multi-location customers with IP
• Flex, IP Flex with VPN and XO SIP locations
• Long distance calling with choice of calling plans
• Online Feature Management through the XO Business Center
• Optional features, including Auto Attendant, Call Center, Account Codes and Voice Virtual Private Network.

XO SIP is currently interoperable with Avaya IP Office, Cisco Call Manager, Cisco Call Manager Express and Digium Asterisk Appliance. XO SIP also utilizes the BroadSoft BroadWorks VoIP platform to provide customers additional advanced IP-PBX features, including auto attendant, call center and voice VPN.

XO Communications plans additional new services and enhancements to the XO IPfolio throughout 2008.

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XO Communications announced an extension of two services campaigns that offer the industry’s most competitive rates and guarantees for high-capacity network services delivered over its advanced nationwide inter- city and metro networks. The two campaigns, “10 Gigs in 10 Days” and the “3 Guarantee Program” will be extended through March 31, 2008 as a result of their previous success.The first service guarantee addresses the prolonged provisioning delays wholesale customers face in obtaining high-capacity network services from their current network services provider. The second program provides increased installation and competitive price incentives for customers to leverage XO’s suite of inter-city and metro network transport solutions, including Ethernet, IP Transit, and Wavelength services.

“Since unveiling these service guarantees, we’ve received a tremendous response from customers that need faster provisioning of high-capacity network services,” said Ernie Ortega, president of XO Carrier Services. “Our continuing investments to expand the capabilities of our IP and transport networks are paying off as we are able to respond quickly to customer demand and provide them with the capacity and services they need, when they need it, at a price they can afford.”

XO “10 Gigs in 10 Days” Guarantee

The XO “10 Gigs in 10 Days” Guarantee is an industry-first installation guarantee that offers wholesale customers the ability to order 2.5 Gbps or 10 Gbps high capacity network transport services and have them provisioned in 10 business days across select major coast-to-coast routes on the XO network. Under the guarantee, if XO Communications fails to install the service within business 10 days, the customer will be eligible for a one month service credit for each year of the customer’s contract.

3 Guarantee Program

Under the 3 Guarantee Program, XO will continue to offer wholesale customers the following guarantees to beat valid competing offers for comparable long haul and high-capacity network services:

1. Best Price Guarantee: XO will beat competing prices for 2.5 Gbps and 10 Gbps Wavelength services and 1 Gbps and 10 Gbps Ethernet services along select major XO network routes;
2. Install Guarantee: XO will provide a one month service credit for these Ethernet, IP Transit and Wavelength services if it fails to meet the agreed upon service delivery date;
3. 90-Day Risk Free Trial Guarantee: XO will allow customers to trial its IP Transit service for one 90-day period without commitment. If the customer is not satisfied, the customer only pays for the services used under the trial.

The XO nationwide network connects 75 major metropolitan markets across the United States. In addition, XO Communications has approximately one million fiber miles of metro fiber in major markets across the United States. With its extensive nationwide and metro fiber network assets, XO offers wholesale customers network transport services that provide door-to-door delivery of customers’ traffic including:

• Ethernet services from GigE to 10 Gbps speeds
• IP Transit services from OC-3 to OC-192 speeds
• Private Line services from OC-3 to OC-192 speeds
• Other high capacity transport services at 2.5 Gbps and 10 Gbps speeds

XO Communications today announced that the Court of Chancery of the State of Delaware has ruled in favor of XO Communications’ complaint for declaratory judgment and injunctive relief preventing Level 3 from interfering with XO Communications’ business operations and directing Level 3 to specifically perform its duties and obligations under its fiber agreements with XO Communications.

Last year, XO Communications filed a complaint with the Court to force Level 3 to cooperate with XO Communications as it lit fiber acquired from Level 3. In its ruling on November 2, 2007, the Court determined that XO Communications has the unfettered right to light fiber it acquired from Level 3 and required Level 3 to provide XO Communications the power and access it needs in order to continue to light fiber for its own network use and use of third party customers.

“We are very pleased with the Court’s decision, which confirmed XO’s right to these facilities and Level 3’s obligations to provide services under the agreement,” said Carl Grivner, chief executive officer of XO Communications. “This decision will remove any uncertainty regarding XO’s rights to its fiber plant, and will spur the continued expansion in the capabilities of the XO nationwide fiber optic network. With rising demand for bandwidth by businesses and service providers, XO Communications is at the epicenter of today’s broadband boom, providing high-capacity network services to domestic and international telecom companies, cable companies, content providers and mobile wireless service providers.”

In 1998, the two companies entered into an agreement to collaboratively develop a fiber optics network. Level 3 was to lay the fiber network while XO Communications purchased an indefeasible right of use in part of that network. Subsequently through other related agreements, XO Communications also agreed to purchase wavelength services from Level 3. Level 3 argued that these related agreements stripped XO of its right to light the fiber it had acquired from Level 3. The court disagreed with Level 3’s position and determined that the subsequent agreements did not “in any way modify, alter, terminate, or suspend the rights XO acquired to light fiber it acquired from Level 3, or to provide, for its own purposes or to third parties, wavelength services utilizing such fiber.”

RESTON, VA - XO Communications today announced the completion of its 800 Gigabit (Gbps) capacity upgrade on major coast-to-coast routes of its nationwide fiber optic network and the unveiling of a new, groundbreaking installation guarantee for wholesale customers that need faster provisioning of high-capacity network services.

As a result of the explosion in customer driven demand for bandwidth-intensive Web 2.0 applications and services including online video streaming, rich multi-media content, wireless data, HD video, and higher-speed broadband offerings, service providers such as cable companies, content providers and wireless and wireline telecommunications companies are facing increased demands on their networks for more capacity. Despite this demand for increased network capacity, many wholesale customers face prolonged provisioning delays with their current network services provider.

XO “10 Gigs in 10 Days” Guarantee
To help wholesale customers obtain high-capacity network services more quickly, XO Communications is offering the XO “10 Gigs in 10 Days” Guarantee. This groundbreaking, industry-first installation guarantee offers wholesale customers the ability to order 2.5 Gbps or 10 Gbps high capacity network transport services and have them provisioned in 10 business days across select major coast-to-coast routes on the XO network. Under guarantee, if XO Communications fails to install the service within business 10 days, the customer will be eligible for a one month service credit for each year of the customer’s contract. The “XO 10 Gigs in 10 Days” Guarantee is being offered from November 1, 2007 until December 31, 2007 to wholesale customers that sign two- or three-year contract terms.

“This guarantee is a demonstration of the power of the XO network and further differentiates the capabilities and value XO can offer customers,” said Ernie Ortega, president of XO Carrier Services. “Our continuing investments to expand the capabilities of our network in terms of capacity and industry-leading optical technology have enabled us to respond quickly to customer demand and become the new, more agile provider of long haul and high-capacity network services.”

A New, More Agile Provider of High-Capacity Network Services
Through ongoing investments to increase network capacity and technology upgrades in the XO network, XO Communications is establishing itself as the new, more agile provider of high-capacity network services in the enterprise and wholesale network services markets. Through the flexibility, scalability and advanced optical technology deployed in the XO network, XO Communications is able to provision services faster and provide a broad range of higher-speed network transport services.

The new network capacity deployed by XO Communications adds 800 Gbps of capacity in core XO long haul network nodes which deliver an additional 80 10-Gbps channels on major coast-to-coast network routes. This additional network capacity augments a capacity expansion XO completed last year which delivered 400 Gbps of capacity across the XO network.

The XO nationwide network connects 75 major metropolitan markets across the United States. In addition to its nationwide network, XO Communications has approximately one million fiber miles of metro fiber networks in major markets across the United States. With its extensive nationwide and metro fiber network assets, XO Communications offers wholesale customers network transport services that provide door-to-door delivery of customers’ network traffic. Across its nationwide and metro networks, XO Communications offers a broad range of high-capacity network services, including:
• Ethernet services from GigE to 10 Gbps speeds
• IP Transit services from OC-3 to OC-192 speeds
• Private Line services from OC-3 to OC-192 speeds
• Other high capacity transport services at 2.5 Gbps and 10 Gbps speeds

For more information about the XO “10 Gigs in 10 Days” Guarantee or other XO Carrier services, call (800) 474-1763.

XO Communications
XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: 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.

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