XO Communications 2010 Annual Report Download - page 8

Download and view the complete annual report

Please find page 8 of the 2010 XO Communications annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 96

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96

highlights XOH’s unique competitive advantages in serving business and carrier customers as the
telecommunications industry consolidates and data and telecommunications services converge.
Business Services
Business Services provides business customers and government agencies with managed IP, data and end-
to-end voice communications solutions. Business Services is focused on obtaining and retaining customers
through an outstanding customer experience and profitably growing revenue through an expanding IP-based
service portfolio.
The United States market for wireline business telecommunications services consists of over 14 million
businesses with average monthly telecommunications spending of approximately $6.0 billion. XOH’s network
footprint reaches approximately 40% of that available market.
To reach our markets, Business Services employs a direct sales and support organization. In addition,
Business Services has agreements with over 250 third-party national, regional and local partners and partner
firms, who represent a broad range of voice, data, consulting, and equipment services that they provide to end
users. These business partners extend the reach of the Business Services sales organization geographically and
address specific customer segments.
Business customers in the United States telecommunications market span a wide range of sizes and
needs, from small businesses to large multi-location enterprises. Business Services is aligning its service
offerings and solutions, sales and channel strategies and customer support models to better meet the needs of
these broad customer groups:
Small-to-Medium Business (‘‘SMB’’). The SMB group consists of single-site or multiple-site
customers. These customers may require multiple service packages or some level of customized solutions.
Mid-Market Business. Business Services is ideally positioned to serve the needs of mid-market
businesses. These growing companies are frequently underserved by large telecommunications providers.
XOH has a range of IP based services, from bundles that are suited to branch locations to customized
solutions that meet the needs of company headquarters locations or multi-site networks. A majority of
Business Services’ resources are concentrated on serving the needs of customers within this market.
Enterprise. Enterprises are large commercial entities with complex communications needs. These
customers require high bandwidth, secure private networks, multi-location services and unique solutions.
Business Services is allocating additional resources in this segment focusing on key growth verticals that
can take advantage of our national footprint and scalable IP-based service portfolio. Business Services
also leverages XOH’s existing nationwide network to increase our penetration in this market.
Government. Government entities from local school districts to state offices and federal agencies
frequently require telecommunications solutions that are similar to mid-market and enterprise businesses.
Yet, government customers have unique needs and purchasing processes necessary to meet the
requirements of serving the public.
Historically, Business Services has served a portion of all these groups, with an especially strong
presence in the SMB market. Beginning in 2008, Business Services commenced shifting its focus to
mid-market businesses. Throughout 2009 and 2010, Business Services continued to increase investment in
network infrastructure, products and services, and resources to accelerate revenue growth in mid-market
businesses with an even greater focus on penetrating the enterprise customer market.
Carrier Services
Carrier Services delivers a broad range of Ethernet and IP, data and transport services to ILECs,
Competitive Local Exchange Carriers (‘‘CLEC’’s), Internet Service Providers (‘‘ISPs’’), interexchange
carriers, non-facility based resellers, building local exchange carriers, cable companies, content service
providers, wireless service providers and mobile service providers. This business unit leverages wholesale
versions of the services described above as well as some unique services that are targeted to wholesale
customers, specifically, Ethernet and TDM Aggregation and VoIP Origination and Termination services.
Ethernet and TDM Aggregation services collect end user data at speeds of 1.5 Mbps to 100 Mbps from
discrete end user or enterprise locations distributed across a wide geographic region at a metropolitan or
4