Press Release

Herdon, VA, October 5, 2010 – XO Communications (OTCBB: XOHO) today announced that it has surpassed one million VoIP customer employee end users, reaching a major milestone in the business VoIP services market.

Through its award-winning business VoIP services portfolio and industry-leading VoIP services bundle, XO® IP Flex, XO Communications has solidified its position as the leading provider of VoIP services for businesses.

  • Launched in April 2005, XO® IP Flex has surpassed more than one million customer employee end users, making it one of the most widely deployed business-class VoIP services bundles for small and medium-sized businesses and large enterprises with distributed locations.
  • According to Frost & Sullivan in its report titled “North American VoIP Access and SIP Trunking Services Market” (April 2010) and its 2010 North American Competitive Strategy Leadership Award in the VoIP Access and SIP Trunking Services Market, XO Communications is the VoIP access services market leader in terms of end users with 22.2% of the market.
  • Taking the United States population into account, one in 300 people in the United States use VoIP services provided by XO Communications.
  • XO Communications is an industry innovator and leader in providing advanced IP-based communications solutions for businesses and large enterprises. The company’s portfolio of award-winning VoIP and SIP trunking services includes XO® IP Flex, XO® IP Flex with VPN, XO® iPBX, XO® SIP and XO® Enterprise SIP.

Key Facts / Highlights:

  • VoIP Bundle: XO® IP Flex offers businesses all the benefits and enhanced features of VoIP without having to replace their existing phone systems, combined with high-speed Internet access and web hosting services in a simply priced bundled solution for one flat monthly price.
  • Simplified Pricing: XO® VoIP services simplify how businesses can buy and scale VoIP services to support their communications needs. Unlike other approaches to VoIP pricing that are still based on traditional TDM pricing models, XO Communications treats voice service as simply another IP application 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, but pay no extra charge for incremental lines or voice channels provisioned within their selected port speed.
  • Continuous Innovation & Enhancements Drive Adoption: XO Communications has continually enhanced XO® IP Flex with new capabilities and features to attract new customers and serve a broader range of customer needs. These enhancements include a wide range of bandwidth options, Class of Service enabled wide area networking with XO® IP Flex with VPN, unified communications capabilities with XO® Anywhere, nationwide VoIP services coverage in all 50 states for multi-location customers, and offering the industry’s first simplified port bandwidth-based pricing for VoIP services that eliminates pricing based on the number of phone lines.
  • Innovative and Leading Technology Partners: XO® IP Flex leverages innovative communications and VoIP technologies from companies including BroadSoft, Cisco and Sonus Networks.

Supporting Quotes:

  • Mike Toplisek, chief marketing officer for XO Business Services, XO Communications

“Through our continuous innovation and voice over IP services leadership, XO Communications enables more businesses to simplify, streamline and reduce the complexity of managing communications and networks across their operations. With nearly 30,000 VoIP customers and more than one million end users, XO Communications has established itself as the business VoIP services market leader.”

  • Elka Popova, program director, Unified Communications and Collaboration, Frost & Sullivan

“XO Communications consistently demonstrates an ability to offer products and services that leverage the latest technology and service models, and the XO brand has come to be associated with high service levels, stringent provisioning standards and excellent value for the money. This latest milestone provides yet another proof point that XO has a clear roadmap and a strong execution strategy in place and is well positioned to continue to grow its customer base and revenues in the rapidly evolving IP communications marketplace.”

  • Mike Rosenbaum, CEO, Catalyst IT Services, a leading onshore alternative to offshore IT outsourcing, consulting, and product development services (first XO IP Flex customer)

“When XO first approached us in 2005 about being the first customer of IP Flex we were very intrigued. It was important for us to understand the different ways in which voice and data services were converging and XO really seemed to be on the forefront of that convergence. We have stayed with XO since becoming the first customer of IP Flex because, as we have evaluated other providers on an intermittent basis, we have found that XO has continued to push the envelope both in the service they provide in voice over IP and also in the cost at which they provide that service.”

Press Release

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