XO Communications Calls On Negotiations Regarding Access to Incumbents' Networks

RESTON, Va.--June 1, 2004--XO Communications, Inc. (OTCBB:XOCM.OB), one of the nation's largest competitive local exchange carriers, has sent a letter to the Chairman of the Federal Communications Commission (FCC) expressing its strong opposition to what it believes are the "secret and exclusive" FCC-sponsored negotiations among the four regional Bell operating companies (RBOCs), AT&T and MCI that have taken place over Memorial Day weekend. Rather than allow competitive local service providers, which have spent billions of dollars to compete against the RBOCs, to participate in negotiations that will set the terms for interconnection and access to the RBOCs' local facilities, the FCC Chairman has met with a select few companies to rewrite rules that are the foundation for bringing millions of consumers and businesses the benefits of competition.

"It is unfortunate that the FCC Chairman has engaged in secret and exclusive negotiations that serve to undermine the Telecommunications Act of 1996, which was enacted to foster competition and protect consumers and businesses from the local monopolies," said XO Communications Chief Executive Officer, Carl Grivner. "XO has invested billions of dollars in local network facilities in order to compete against the RBOCs. The deliberate exclusion, from the negotiations process, of companies that have brought true facilities-based competition to the telecommunications industry demonstrates a total disregard for open and fair discussions. The secret negotiations favor the monopolistic interests of the mammoth 'Baby Bells' at the expense of consumers and competitive carriers and, in my opinion, would result in billions of dollars in rate increases for consumers and businesses."

About XO Communications

XO Communications is a leading broadband telecommunications services provider offering a complete portfolio 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.