XO Communications 2010 Annual Report Download - page 6

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Utilize Our Network Assets. XOH’s network is interoperable with both traditional and IP services.
This allows customers to access XOH’s network with greater flexibility and enables us to offer solutions
with significant appeal to business, carrier and wholesale customers. XOH’s national network includes
over 950 central office collocations in over 85 major metropolitan markets across the United States.
XOH’s network footprint includes an 18,000 route mile nationwide inter-city fiber optics network, over
one million fiber miles, and approximately 3,000 on-network buildings. We continually update the
capacity and capabilities of the network and expect to continue to do so in 2011.
Provide Quality Services to our Customers. We support our nationwide network with an
integrated array of systems and support personnel to ensure that our customers receive the highest quality
of service. We employ a software-based single interface to all network fault management requirements
and for advanced, highly accurate provisioning. XOH’s professional staff monitors the network 24/7, with
subject-matter experts available to resolve issues quickly and accurately. XOH offers online tools that
provide customers secure, self-service portals for the creation, maintenance, tracking and reporting of a
number of services. Throughout 2009 and 2010, XOH has continued to expand its self-service platform
by delivering new technologies and functionality to meet increasing customer demands. Our focus for
2011 is centered on repair, network management and business-to-business system integration. We
continue to invest in operational areas including provisioning, care efficiency and billing accuracy as a
way to further improve our customers’ experiences.
Transformation. In 2008, after an extensive review of our business and operations with the
assistance of outside advisers, we commenced an enterprise-wide transformation plan intended to enhance
shareholder value through focusing on improving service delivery, accelerating revenue growth and
reducing our operating costs. We expect to continue this initiative over the next several years. Benefits
from this initiative were partially realized in 2009 and 2010 and with further realization expected in 2011
and beyond. In conjunction with this transformation initiative, we will continue to invest in new network
infrastructure, develop new service offerings and expand our large business and enterprise customer base.
Service Offerings
We use our nationwide IP network, extensive local metropolitan networks and broadband wireless
facilities to offer a broad portfolio of services. The revenue from these services is aggregated into
three categories: Broadband services, Integrated/Voice services and Legacy/TDM.
Broadband Services. These services include IP Flex, Dedicated Internet Access (‘‘DIA’’),
Ethernet, and other IP-based solutions, as well as data services including Dedicated Private Line,
Telco Collocation and Multi-Transport Networking (‘‘MTNS’’). Also included in this category is our
MPLS IP-VPN service that allows our multi-location customers to securely connect their sites to achieve
more bandwidth for the dollar, faster application deployment, lower network operating costs, and more
access options. MPLS IP-VPN service is a fully managed converged voice and data network service with
advanced features for application traffic prioritization by class of service for router management and for
applications performance management. In addition, it offers universal site-to-site connectivity, a broader
selection of access options and no rigid limits on bandwidth. Customers can select class of service
options to prioritize their network traffic.
XOH provides private line dedicated transport services (‘‘private line’’) point-to-point
connectivity. Our Dedicated Private Line service provides special access and point-to-point circuits to
high volume customers, for their use as both primary and back-up circuits. In addition, fiber optic
technology that enables signals to be transmitted at different wavelengths on a single fiber allows XOH to
lease one or more dedicated wavelengths with connections of up to 9.6 Gbps, a transmission rate known
as OC-192. This service supports a variety of transmission protocols, including ATM, Frame Relay, and
Synchronous Optical Network. In addition, XOH’s facilities-based network allows us to offer data and
telecommunications equipment collocation in many of our facilities across the United States. This
capability allows customers to locate their equipment in secure, controlled access cabinets or cages at
XOH facilities. By placing their equipment in an XOH collocation, customers enjoy easy connection to
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