XO Business Services and XO Carrier Services

In order to drive greater agility in the execution of its growth strategy, XO Communications today announced the formation of two new business units, XO Business Services and XO Carrier Services, each of which will be led by its own president. The creation of lines of business strengthens the company’s focus around specific customer segments and highlights the company’s unique competitive advantages in serving business and wholesale customers as the telecommunications industry consolidates.

“The new lines of business structure aligns our company in a way that will enhance our customer focus, decision-making and speed of execution, as well as help us continue to deliver advanced voice, data and IP solutions over XO’s unrivaled network assets and reach,” said Carl Grivner, CEO of XO Communications. “By bringing together product, sales and service delivery operations under each business unit, we will be better able to address the changing needs of our customers. This results in a new era of opportunity for XO to provide greater value to our customers. In addition, as the industry continues to consolidate, this structure will highlight XO’s unique strengths and position as the leading alternative communications provider to the regional Bell telephone companies for both businesses and carrier customers.”

Each line of business, which will consist of its own finance, marketing, product management, sales and service delivery teams, will develop and implement market, operational and sales strategies to deliver end-to-end voice, data, and IP communications solutions to their target customers. The new lines of business structure creates a single point of decision-making that will drive increased focus and profitable growth in each customer segment. To lead the new business units, XO announced the following executive appointments reporting to XO’s Chief Operating Officer, Wayne Rehberger:
• Tom Cady has been named president of XO Business Services. Cady previously focused on the development of Nextlink, the broadband wireless subsidiary of XO Holdings, XO Communications’ parent company, until Nextlink’s launch and also previously served as chief marketing officer of XO Communications. Cady’s career spans more than 25 years in the telecommunications industry with executive positions in management, marketing and sales at BroadStreet Communications, Adelphia Communications, Hyperion, and IBM.
• Ernie Ortega has been named president of XO Carrier Services. Ortega, who has 20 years of experience in the telecommunications industry, has served as president of carrier sales at XO Communications. Prior to his appointment as president of carrier sales, he served as vice president of national accounts for XO Communications. Prior to joining XO, he held sales management positions with MCI.

XO Business Services
XO Business Services will provide businesses and large enterprises with end-to-end voice, data and managed IP communications solutions that leverage XO’s extensive nationwide network reach to 75 metropolitan markets. As one of the nation’s largest competitive communications companies, XO is uniquely positioned as a leading local and national alternative to the nation’s incumbent telephone companies for businesses and large enterprises.

“With our extensive network reach and breadth of services, XO is well-positioned to strengthen its position as the number one alternative provider for businesses’ local and nationwide requirements,” said Tom Cady, president of XO Business Services. “The goal of XO Business Services will be to drive profitable growth for XO through a series of new initiatives, including an increased emphasis on local customer sales and service, moving up-market to serve larger enterprises, and expanding XO’s managed voice, data and IP services offerings.”

XO Carrier Services
XO Carrier Services will focus on delivering a broad range of wholesale voice, data and IP services to cable companies, content and search companies, telecommunications companies, VoIP providers and wireless service providers. XO Carrier Services will leverage XO’s extensive nationwide and metro network assets, which include an 18,000 route mile nationwide inter-city network connecting 75 metropolitan markets and local networks in 37 metropolitan markets consisting of one million fiber miles.

“Over the past few years we’ve experienced steady revenue and customer growth in our carrier services segment,” said Ernie Ortega, president of XO Carrier Services. “This increased demand coupled with the recent deployment of our new next generation long haul network puts XO in a position to capture more of the wholesale services market. To that end, this restructuring creates more focus that will further solidify our leading position in the marketplace as we continue to grow revenue in this segment.”

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