XO Communications Announces Successful Trial Of Fixed Wireless Broadband Access

RESTON, Va.--(BUSINESS WIRE)--Jan. 14, 2004--XO Communications, Inc. (OTCBB:XOCM), one of the nation's leading providers of broadband telecommunications services, today announced successful trials of its fixed wireless broadband access to dozens of customers in San Diego and Irvine, California.

Taking advantage of the company's extensive broadband wireless spectrum, XO Fixed Wireless Access provides businesses and carriers with a cost-effective, high-speed access solution to deliver all types of data and voice services including Internet connectivity, Ethernet, and voice over IP (VoIP) services. These services are provisioned more quickly than traditional wireline-based services by eliminating the "last mile" of Regional Bell Operating Companies (RBOCs) to reach business and carrier customers directly.

XO is the licensee of the largest U.S footprint of fixed wireless spectrum, covering 95 percent of the population in the top 30 U.S. cities. This technology works by connecting the end user through fixed wireless access to points of presence on the XO metro fiber network, thus eliminating the need for the RBOCs' last mile infrastructure. With direct access to businesses and carriers, the widespread deployment of this wireless technology can significantly reduce the multi-millions of dollars in access charge payments that XO makes each year to the RBOCs. This third generation fixed wireless broadband access, in conjunction with XO's long haul, IP and metro fiber network, also allows XO to offer a wide range of metro, national and global connectivity solutions.

Carl Grivner, CEO of XO Communications, said, "These trials could be a very meaningful breakthrough for XO. In that XO can reduce "last mile" costs, XO can become even more price competitive than it is today for business customers. Additionally, this will allow XO to compete in the multi-billion dollar "last mile market" for carrier customers that now use the local RBOC." Mr. Grivner stated that while initial trials have been successful, there will need to be additional trials before a national rollout can be undertaken.

XO Fixed Wireless Access has significant advantages over incumbents' wireline based access solutions. It can be used to provision both Internet and Ethernet services to customers in just days, in contrast to the weeks or months typical of provisioning through RBOCs. In addition, XO Fixed Wireless Access is a more cost-efficient solution offering as much as three times more bandwidth for the cost of a traditional dedicated T-1 circuit. Using local multipoint distribution system (LMDS) technology, XO successfully tested fixed wireless access with burstable bandwidth capabilities from one Mbps up to 20-plus Mbps.

XO Communications is a leading broadband telecommunications services provider offering a complete set of telecommunications services, including: local and long distance voice, Internet access, Virtual Private Networking (VPN), Ethernet, Wavelength, Web Hosting and Integrated voice and data services.

XO has assembled an unrivaled set of facilities-based broadband networks and Tier One Internet peering relationships in the United States. XO currently offers facilities-based broadband telecommunications services within and between more than 70 markets throughout the United States.