XO Communications expands nationwide availability of Ethernet services

MAY 1, 2008 -- XO Communications (search for XO Communications) says it has expanded its nationwide Ethernet services footprint, enabling more businesses, enterprises, and service providers to benefit from high-speed, scalable network connectivity provided by Ethernet technology.

XO Communications claims it is now capable of delivering Ethernet services to more than half a million business locations in 75 major metropolitan markets across the United States utilizing its nationwide fiber networks, expanded deployment of Ethernet over copper technology, and fixed broadband wireless capabilities. By leveraging these multiple network access methods, XO Communications says it now offers one of the most ubiquitous Ethernet services footprints nationwide.

According to research firm IDC, the U.S. market for Ethernet services will increase from $1.3 billion in 2007 to $6 billion in 2012, representing a compounded annual growth rate (CAGR) of 36%. Growth is being driven by customers' increasing willingness to use Ethernet services for new networking requirements and as a replacement for legacy data services.

Demonstrating this demand, XO Communications' says its Ethernet services revenue increased more than 50% between 2007 and 2006. In addition to increasing its ability to serve this fast-growing market, the expanded footprint also increases the company's ability to deliver other services, such as dedicated Internet access, converged IP and MPLS-based IP-VPN services, which can utilize Ethernet as a network access method.

"Ethernet's ease of use, scalability and price are all appealing characteristics stimulating strong demand by companies," reports Courtney Munroe, group vice president, worldwide telecommunications at IDC. "In addition, the growing range of bandwidth options and solutions offered by service providers such as XO Communications will lead to faster adoption in this rapidly growing segment."

"XO Communications is breaking down the barriers to the wider availability of Ethernet with the unrivalled reach of our Ethernet service delivery capabilities," adds Randy Nicklas, chief technology officer at XO Communications. "Our broad nationwide footprint leverages multiple access technologies to support businesses and service providers that are increasingly relying on Ethernet to support mission-critical applications and data across their wide area networks."

Traditionally, the availability of Ethernet services has been limited to locations that have direct access to fiber networks. Today, onlyI15% of U.S. buildings with 20 or more employees have direct fiber access, according to the research firm Vertical Systems. XO Communications says it has taken a leadership role in expanding the availability of Ethernet services to more locations through its utilization of multiple network access platforms, including its extensive nationwide inter-city and metro fiber network footprint, the industry's largest deployment of Ethernet-over-copper technology, and its fixed broadband wireless capabilities.

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