Meet XO Communications

www.xo.com © Copyright 2009. XO Communications, LLC. All rights reserved. XO, the XO design logo, and all related marks are registered trademarks of XO Communications, LLC. 1

Meet XO CommunicationsXO Communications is one of the nation’s largest communications service providers focused exclusively on businesses, government, domestic and international telecommunications carriers, cable companies, content providers and mobile wireless companies.


Agenda

Company Highlights Financial Highlights Industry Recognition Our Customers The XO Difference The XO Network XO Services Portfolio XO Customer Ecosystem Our Solutions XO Customer Experience Why Businesses Choose XO


About XO

• Established: 1996

• HQ: Herndon, VA

• 2010 Revenue: $1.53 Billion

• Employees: 4,000

• Business Units– XO Business Services– XO Carrier Services

• Customers: 90,000– 50% of Fortune 500, including

Abercrombie & Fitch, eBay, Morgan Stanley, United States Postal Service

• Network:– 19,000-mile Tier 1 nationwide network

connecting more than 85 markets– High-performance IP and transport

networks

• Services:– Broad portfolio of IP communications,

managed network and hosted IT services

We are the nation’s premier communications services provider focused exclusively on businesses, government and enterprises, delivering industry-

leading IP and networking solutions with exceptional customer service


XO Financials

Series1$0

$100$200$300$400$500$600$700$800$900

$1,000

$530.3

$670.6

$798.4$895.8

IP and Data Services1 Revenue(millions)

Series1$0

$50

$100

$150

$200

$250

$106.7 $110.0

$152.6

$191.1

Adjusted EBITDA(millions)

Series1$1,360$1,380$1,400$1,420$1,440$1,460$1,480$1,500$1,520$1,540

$1,428.7

$1,477.6

$1,521.3 $1,529.2

Revenue(millions)

2007 2008 2009 2010

XO has no senior long term debt obligations

2007 2008 2009 2010 2007 2008 2009 2010

(1) VoIP, SIP, DIA, Ethernet, MPLS IP-VPN, Private Line, Wavelength, Colocation Services


XO 2010 Financials

Revenue Growth of 6% 1 Broadband Services Revenue Growth of 13% 1

Adjusted EBITDA Increase of 93% 1

(1) VoIP, SIP, DIA, Ethernet, MPLS IP-VPN, Private Line, Wavelength, Colocation Services(2) Q1 2010 vs. Q4 2010

XO is outpacing the industry in IP and data services revenue growth

Q12010

Q22010

Q32010

Q42010

Series1$355$360$365$370$375$380$385$390$395

$369.5

$383.6$385.7

$390.3

Revenue(millions)

Series1$195$200$205$210$215$220$225$230$235$240

$209.8

$220.0

$228.8

$237.3

IP and Data Services1 Revenue(millions)

Q12010

Q22010

Q32010

Q42010

Series1$0

$10

$20

$30

$40

$50

$60

$70

$30.6

$40.5

$60.8 $59.2

Adjusted EBITDA(millions)

Q12010

Q22010

Q32010

Q42010


Industry Recognition

2008 2009 2010

Frost & SullivanBEST EMERGING COMPANY

Awarded for MPLS IP-VPN strengths and expansion of U.S. Ethernet coverage

Frost & SullivanVOIP & SIP LEADERSHIP AWARD

Named leading North American VoIP access & SIP trunking services provider with 22.2% of the market

Internet TelephonyPRODUCT OF THE YEAR AWARD

XO Enterprise SIP recognized as 2009 Product of the Year by Internet Telephony magazine

NGN MagazinePRODUCT OF THE YEAR AWARD

XO Enterprise SIP receives 2010 NGN Leadership Award from NGN magazine

InformationWeekRANKED #14 OUT OF 500

Highest ranked telecom company, awarded for multi-tiered workforce mobility initiative

CIO MagazineCIO 100 AWARD HONOREE

Recognized as having one of the top 100 IT departments in 2009

Internet TelephonyPRODUCT OF THE YEAR AWARD

XO SIP recognized as 2008 Product of the Year by Internet Telephony magazine

CIO MagazineCIO 100 AWARD HONOREE

Recognized as having one of the top 100 IT departments in 2010

InformationWeekRANKED #27 OUT OF 500

Highest ranked telecom company, awarded for IP services transformation

Telephony InnovationMOST INNOVATIVE FMC SERVICE

XO Anywhere received 2008 Telephony Innovation Award for most innovative fixed mobile convergence service


XO: The Leading Nationwide VoIP/SIP Trunking Services Provider

• Frost & Sullivan has ranked XO as the leading nationwide VoIP & SIP services provider

• XO leads all nationwide providers in terms of growth, innovation, leadership, market share, strategy, technology and vision

• XO leads all nationwide providers with the largest number of VoIP/SIP end users: 1 million+

Sources: Frost & Sullivan, “North American VoIP Access and SIP Trunking Services Markets”, April 2010 Frost & Sullivan, “2010 North American Competitive Strategy Leadership Award for VoIP Access & SIP Trunking Services”, August 2010


A Trusted Provider to BusinessesAcross Major Vertical Markets

PROFESSIONAL SERVICES

MEDIA / ENTERTAINMENT

TECHNOLOGY

RETAIL

HEALTHCARE

GOVERNMENT / EDUCATION

FINANCIAL SERVICES

http://www.ebay.com/


The XO Difference

The Right Network Capabilities and Reach– Unique combination of nationwide/metro fiber networks and broadband

wireless capabilities to deliver innovative services to your locations wherever they are

The Right Solutions for Your Business– Broad portfolio of next-generation IP communications, managed network

and hosted IT solutions built around your business that can support your entire lifecycle of needs

Focus on Exceptional Customer Service– We’re specialists in services for businesses and are focused on delivering

exceptional customer service


The Right Network for Your Business

NATIONWIDE

LOCAL

GLOBAL


Nationwide Network Coverage

Nationwide Network Coverage 85+ cities 19,000 inter-city route miles

High-Capacity IP and Transport Networks Multi-terabit nationwide

transport network Tier 1 IP network with terabit

routing core

Extensive Access Options Fiber networks Ethernet over copper Broadband wireless

The XO nationwide network is designed to deliver maximum coverage, performance and scalability


Extensive Metro Network Coverage

Metro fiber networks in 40 major metropolitan markets

Extensive Metro Networks & Significant Local Reach 1 million metro fiber miles 3,000 on-net buildings 950 ILEC collocations 6,000 SONET ADMs 2,500 SONET rings 50+ colocation facilities


Unique Broadband Wireless Capabilities

Broadband Wireless coverage in 80 metropolitan markets

Expanded Network Coverage with Broadband Wireless 28 GHz-31 GHz (LMDS)

broadband wireless spectrum Supports Dedicated Internet

Access, Ethernet and Private Line at speeds from 10 – 800 Mbps

Ideally suited for business continuity/redundancy, campus and metro networks or locations without fiber network access


Global Reach

Global service delivery to more than 40 countries on five continents


Solutions Built Around Your Business

CONNECT

COMMUNICATE

MANAGE

PROTECT

OPTIMIZE


XO Services Portfolio

Voice ServicesLocal

Long Distance

Conferencing

Contact Center/IVR

XO Connect

VoIP Services

XO IP Flex

XO IP Flex with VPN

XO SIP

XO Enterprise SIP

XO Enterprise Cloud Communications

XO iPBX

XO Anywhere

Network Services

Dedicated Internet Access

EthernetPoint-to-Point, Hub, Access, VPLS

MPLS IP-VPNApplications Performance Management

XO IP Flex with VPN

Private Line

Wavelength

Collocation

Broadband Wireless

Cloud & Managed Security

Hosted IT Services

Web Hosting

Cloud Backup

Hosted Exchange

A complete portfolio of IP communications and managed network services


Solutions Built Around You.

Seamlessly connect

all of your locations

regardless of size or

location with a

broad range of cost

effective and

scalable high

performance data

and IP networking

services.

CON

NEC

T

Improve

communications

between offices,

customers and

partners with next

generation IP voice

and unified

communications

solutions that help

your business

operate more

efficiently and

increase

productivity.

COM

MU

NIC

ATE Simplify and get

better control with

managed solutions

and professional

services that allow

you to dedicate

more resources on

your core business.

MAN

AGE

PRO

TECT Increase your

business

performance with

managed network

and applications

performance

solutions that

accelerate the speed

of your mission

critical applications

and networks.

OPT

IMIZ

E

… and solutions to support your mission-critical business applications

Ensure the integrity,

performance and

security of your

company’s mission-

critical applications,

information and

network with

managed security,

private data

networking and

business continuity

solutions


Fiber1 million metro fiber miles,

3,000 on-net buildings

Copper950 ILEC collocations

EthernetEthernet access to 5M+

business locations

WirelessSpectrum covering 95% of

top markets

Solutions EngineeringSolutions Analysis, Design and Implementation | Professional Services

Business CenterOnline Account Management

XO Customer Ecosystem

XO IP NetworkTerabit Routing Core | 28 Billion VoIP minutes Annually

ConnectDIA | Ethernet | MPLS IP-VPN | IP Flex with VPN | Colocation |

Private Line | Wavelength |

Broadband Wireless

XO Transport Network19,000 Route Miles | Multi-Terabit Capacity Coast-to-Coast

Unparalleled NetworkAccess Options

World-Class NetworkInfrastructure

Solutions BuiltAround Your

Business Needs

World-ClassPeople & Support

CommunicateIP Flex | IP Flex with

VPN | XO SIP | XO Enterprise SIP | XO

Enterprise Cloud Communications | XO Anywhere | Contact Center | Local Voice|

Long Distance | Audio & Web Conferencing

ManageMPLS IP-VPN | IP Flex

with VPN | iPBX | Hosted IT Services |

Cloud Backup | Professional Services

ProtectBusiness Continuity | Managed Security |

Cloud Security | Cloud Backup

OptimizeApplications Performance

Management | Hosted IT Services |

Professional Services | Lifecycle Services

InstallationLocal XO Technicians Nationwide

Customer Care24x7 Professionals

Enabling Your Business Applications

InnovativeSolutions Design


CONNECT

Seamlessly connect all of your locations regardless of size or location with a broad range

of cost effective and scalable high performance data and IP networking services.

Click to learn more about…

Dedicated Internet Access

MPLS IP-VPN

IP Flex with VPN

Ethernet

Private Line

Wavelength

Colocation / Data Center

Broadband Wireless

http://www.xo.com/services/network/dia/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/network/mpls-ipvpn/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/voip/Pages/IPFlex-VPN.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO&utm_term=TERM

http://www.xo.com/services/network/ethernet/Pages/overview.aspx?ListSource=LinkedIn?utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO&utm_term=TERM

http://www.xo.com/services/network/Pages/private-line.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/network/Pages/wavelength.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/network/Pages/colocation.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/network/Pages/broadband-wireless.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO


COMMUNICATE

Improve communications between offices, customers and partners with next

generation IP voice communications solutions that help your business operate more

efficiently and increase productivity.

Click to learn more about…IP Flex

SIP Trunking

Enterprise SIP

Enterprise Cloud Communications

iPBX

XO Anywhere

Contact Center & Interactive Voice

XO Connect

Conferencing

Local & Long Distance

http://www.xo.com/services/voip/ipflex/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/voip/sip/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/voip/sip/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/voip/Pages/EnterpriseSIP.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/voip/Enterprise-Cloud-Communications/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/voip/Pages/iPBX.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/voip/Pages/XOAnywhere.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/Voice/interactive/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/Voice/Pages/XOConnect.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO&utm_term=TERM

http://xoconferencing.com/xo/?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/Voice/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO


MANAGE

Simplify and get better control with managed and professional services that allow

you to dedicate more resources on your core business.


MPLS IP-VPN

iPBX

Professional Services

Hosted IT Services

Cloud Backup


http://www.xo.com/services/voip/Pages/iPBX.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/hosting/hosted-IT/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/hosting/hosted-IT/Pages/cloud_backup.aspx&ListSource=LinkedIn?utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO


PROTECT

Ensure the integrity, performance and security of your company’s mission critical

applications, information and network with secure, private data networking,

hosted IT and business continuity solutions.


Business Continuity Solutions

Cloud & Managed Security

MPLS IP-VPN

Collocation / Data Center

Cloud Backup

http://www.xo.com/services/network/Pages/Enterprise-Cloud-Security.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO


http://www.xo.com/services/network/Pages/colocation.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/hosting/hosted-IT/Pages/managed_backup.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO


OPTIMIZE

Increase your business performance with hosted IT and managed network solutions

that accelerate the speed of your mission critical applications and networks.


MPLS IP-VPN

XO Ethernet VPLS

Applications Performance Manage

ment

Lifecycle Services

Professional Services

Hosted IT Services


http://www.xo.com/services/network/ethernet/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/network/mpls-ipvpn/Pages/APM.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/network/mpls-ipvpn/Pages/APM.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO

http://www.xo.com/services/hosting/hosted-IT/Pages/overview.aspx?ListSource=LinkedIn&utm_source=LinkedIn&utm_medium=SM&utm_campaign=SalesLinkedInProfile&utm_content=MeetXO


An Unrelenting Focus on Delivering Exceptional Customer Service

ACCOUNT TEAM

SOLUTION DESIGN

INSTALLATION

CUSTOMER CARE

ONLINE TOOLS


XO Customer Experience

Customer

Account Executive

SolutionsEngineer

CI Team24x7

Customer Care

XO Business Center

Account Relationship

Manager

Consistent customer experience Designated points of contact Smooth implementation for every XO

service 24x7 Customer Care representatives Web-based customer resources and

tools for managing your account and services

A superior experience through a higher level of attention and support than what most other service providers offer


XO Customer Experience

Account Executive

Dedicated Account Management Throughout Your Entire Lifecycle

SolutionsEngineer

CI Team

Customer Care

Your dedicated account representative responsible for

new services

Responsible for the design of your overall XO solution

Serves as your POC during installation & coordinates activation of your services

Your 24x7 resource for billing and service issues

ARMYour dedicated Account

Relationship Manager for overall account management


XO Solutions Engineering

• Each XO solutions engineer averages more than 17 years of experience

• All of our sales engineers have at least one Cisco certification with multiple CCIE certifications

Innovative Solutions Design Through Our World-Class Solutions Engineering Organization

Analysis Design Implementation

Provide an accurate and responsive analysis of your business needs

Develop an XO solution that is functional,

scalable, future-proofed, and cost-effective

Ensure what is designed can be implemented and supported flawlessly to ensure our customers a

perfect experience

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XO Customer Care & Support

270 Customer Care representatives located in six cities across the country managing more than 200,000 customer contacts every month

80% of incoming calls are answered in 20 seconds or less

Highly-trained Network Operations Center engineers, technicians and personnel providing proactive network management, maintenance monitoring and notification

Unrivalled Customer Care & Support

XO Care Center - Saginaw, MI

XO Care Center - Dallas, TX

XO Care Center - Nashville, TN

XO Care Center - Lone Tree, CO

XO Care Center - Wyomissing, PA

XO Care Center - Sandy, UT

XO NOC - St. Louis, MOXO NRC – Lone Tree, CO


XO Business Center

Billing & Account Management• View, download and analyze bills and call detail reports• Pay bills online via credit card or debit from your bank account• Set up Autopay so bill payments are automatically deducted each month• Change billing address online• Sign up for paperless billing and email payment reminders• Designate four account access levels (including Master Administrator)

Customer Care• Initiate trouble tickets online 24/7• Email requests or issues directly to a Customer Care agent• Review current trouble ticket status or get notified by email• Receive network outage and proactive maintenance notifications• Take advantage of Customer Care on Twitter - @XOCare

XO VoIP Customer Features• Configure features for each phone line with Online Feature Management

Usage Statistics & Web Site Maintenance• Monitor throughput on each Internet access circuit• Update your Web site online

Online Tools to Manage Your Account Anytime, Anywhere Through the XO Business Center


XO Differentiators

The Right Network – XO has the network reach to support you wherever you are, with the flexibility, performance and scalability your business requires

Solutions Built Around Your Business – XO offers a broad range of IP communications and networking services and solutions built around the needs of your business

The Best Customer Experience – XO is focused on your business, with dedicated people, support and systems to ensure you have constant access and control over your services


Why Customers Choose XO

High-performance network with extensive nationwide reach and dense metro coverage, and a broad portfolio of IP communications and managed network services

The need for a superior customer experience and a higher level of service than what they are getting from incumbent telecom providers

Uniquely positioned to support customer locations of all sizes

The expertise and flexibility to support customers in any stage of the technology lifecycle

A provider that can handle all or a portion of a customer’s business


CONNECT

COMMUNICATE

MANAGE

PROTECT

OPTIMIZE

Technology

Meet XO Communications