XO Communications 2010 Annual Report Download - page 7

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the XOH network and other carrier networks, 24/7 monitoring, backup power, and other services that
help customers increase bandwidth, reduce costs, avoid capital expenditures, and improve redundancy and
business continuity capabilities.
XOH offers a range of solutions for DIA, from traditional 1.5 Mbps T1 services to high speed
optical internet access at speeds up to 10 Gbps. A suite of Ethernet transport services, including
Gigabit Ethernet (‘‘GigE’’), as well as inter-city Ethernet services at 10 Mbps, 100 Mbps, 1 Gbps and
10 Gbps between markets is available on both our fiber network and through fixed wireless capabilities.
These services are designed to provide high-speed, high-capacity connections between customers’
Local Area Networks within and between metropolitan areas and reduce costs for customers as they
eliminate the need for ongoing configuration, management and acquisition of equipment. XOH offers a
broad portfolio of converged and VoIP services including integrated bundles, Session Initiation Protocol
(‘‘SIP’’) service, and VoIP origination and termination solutions. Converged solutions allow voice and
data traffic to transverse the same circuit, treating voice services as another IP application. XO SIP
Service provides a native IP connection to the newest generation of IP-based PBXs. IP Flex provides a
VoIP solution for customers who want to keep their existing phone equipment. XOH has one of the
largest deployments of soft-switches to support both circuit switched voice traffic and packet-based
VoIP traffic, carrying nearly 20 billion minutes of VoIP traffic in 2010.
Integrated/Voice Services. XOH provides a portfolio of integrated and voice services for business and
carrier customers. This portfolio includes traditional local and long distance services, such as PRI and our
wholesale carrier long distance, Carrier Long Distance Termination (‘‘CLDT’’), as well as integrated
voice and data services such as XOptions and Integrated Access. Carriers rely on XOH’s service to
originate and terminate large volumes of minutes on behalf of their customers.
Legacy/TDM. XOH’s Legacy/TDM services are predominantly deployed using TDM and circuit
switched voice technologies. These services include the following categories:
Voice Services. XOH’s traditional voice services are a proven alternative to the ILECs. XOH
has negotiated and entered into interconnection agreements with applicable ILECs and certain
independent carriers, and implemented permanent local number portability, which allows new
customers to retain their existing telephone numbers when they choose XOH as their service
provider. XOH offers a variety of traditional voice applications and services including standard dial
tone (with 911 access, touch tone dialing, directory assistance and operator-assisted calling), retail
local and long distance services (including international, toll-free, operator-assisted and calling card),
basic business lines, switched trunks, local voice features such as messaging, voice and web
conferencing and carrier reciprocal access.
Hosting and Hosted Applications. XOH offers a range of web hosting, messaging,
collaboration and Software-As-A-Service (‘‘SaaS’’) applications to help customers manage their
online business and to provide online business tools to our customers. These services include
website hosting, business email, managed server and professional website services related to these
products.
Managed Services. XOH managed services provide network-based Interactive Voice
Response (‘‘IVR’’) services that provide custom-designed voice response systems that reduce costs
and improve serviceability by routing calls, capturing information and locating, retrieving and
communicating data.
Business Units
XOH operates through three customer-centric business units: XO Business Services (‘‘Business
Services’’), XO Carrier Services (‘‘Carrier Services’’) and XO Small Business Services (‘‘SBS’’). Business
Services markets our telecommunications solutions to government agencies and business customers, ranging in
size from small businesses to Fortune 500 companies. Business Services provides managed IP, data and end-
to-end communications solutions. Carrier Services markets wholesale solutions to carriers and other
telecommunications providers. SBS is primarily marketed to small business customers. This business unit
structure helps XOH focus on specific customer groups, grow revenue within each customer group, and it
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