XO Surpasses 1M Business VoIP Users

XO Communications Inc. announced Tuesday that more than 1 million end users  one in 300 people in the United States now use its IP Flex VoIP services since they were introduced in April 2005.

The milestone demonstrates we are a market leader,” said Eric Hyman, product director of applications services.

An independent analysis concurs. XO is the VoIP access services market leader in terms of end users with 22.2 percent of the market, according to a Frost & Sullivan report, North American VoIP Access and SIP Trunking Services Market,” which was published in April 2010.

Hyman said XO has experienced double-digit growth in its VoIP services on an annual basis since 2005. We are forecasting double-digit growth in 2011, so we expect the momentum to continue,” he said.

As a percentage of sales, the ratio is at about 80/20 VoIP to TDM, Hyman said, noting more significantly that in 2010 IP revenue surpassed TDM revenue for the company.

XOs VoIP portfolio includes its flagship IP Flex, a converged voice and data solution that works with customers existing TDM-based equipment. A variation on the service adds VPN for multilocation businesses. Between them, there are about 30,000 businesses using these services.

 XO SIP, released in 2007, is a SIP trunking offer for SMBs with IP PBXs. About 1,000 companies are using this service. That same year, XO began offering  a managed PBX plus SIP bundle, XO iPBX, in concert with Avaya Inc. It now has about 1,000 companies on board.

In late 2009, XO added XO Enterprise SIP, which connects larger midmarket companies with distributed architectures via a private data network. This newest product already has 20-50 customers, Hyman estimated.

Hyman attributes the companys success to simple pricing based on speed, calling plan plus incremental features as well as ease of use due to web-based administration and innovations over time. Specifically, on this last point, he notes the addition of mobility, BC/DR features and coverage throughout the country, including Alaska and Hawaii.

XOs first IP Flex customer, Catalyst IT Services, remains a customer. Mike Rosenbaum, Catalysts CEO, recalled being intrigued by the opportunity back in 2005. 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,” he said. 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.”

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