XO Forms New Business Units

In order to drive greater agility in the execution of its growth strategy, XO Communications Inc. announced Monday the formation of two new business units, XO Business Services and XO Carrier Services.

The new lines of business structure aligns our company in a way that will enhance our customer focus, decision making and speed of execution, as well as help us continue to deliver advanced voice, data and IP solutions over XOs unrivaled network assets and reach, said Carl Grivner, CEO of XO. By bringing together product, sales and service delivery operations under each business unit, we will be better able to address the changing needs of our customers.

XO Business Services will provide businesses and large enterprises with end-to-end voice, data and managed IP communications solutions that leverage XOs extensive nationwide network reach.

XO Carrier Services will focus on delivering a broad range of wholesale voice, data and IP services to cable companies, content and search companies, telecommunications companies, VoIP providers and wireless service providers. XO Carrier Services will leverage XOs nationwide and metro network assets, which include an 18,000- route mile inter-city network connecting 75 metropolitan markets and local networks in 37 metropolitan markets consisting of 1 million fiber miles.

The two units will each have its own finance, marketing, product management, sales and service delivery teams; will develop and implement market, operational and sales strategies to deliver end-to-end voice, data and IP communications solutions to their target customers.

Tom Cady, who has served as chief marketing officer of XO, has been named president of XO Business Services. Ernie Ortega has been named president of XO Carrier Services. Ortega has served as president of carrier sales and as vice president of national accounts for XO.

The company also announced Monday that it has completed its new nationwide inter-city fiber optic network and is carrying customer traffic across all segments. XO has also begun deploying additional capacity upgrades along major routes on the network in response to customer demand. The network allows XO to more than double capacity and offer a broader range of high-speed data transport services to content providers, enterprises and service providers.

The new XO long-haul network initially delivers 100gbps capacity and sets the stage for an increase up to 400gbps between any two cities on the XO inter-city network.

XO Communications Inc.

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