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.

Press Release