XO Communications, Inc. (OTCBB: XOCM.OB) today announced the launch of its Voice over Internet Protocol (VoIP) services bundle, XOptions Flex, in the Minneapolis-St. Paul metropolitan area.

XOptions Flex is an integrated VoIP services solution that gives business customers enhanced features, functionality and value for their voice and Internet services, all in one simple package. It is the industry’s first VoIP services bundle for businesses that combines unlimited local and long distance calling, dedicated Internet access and web hosting services for a flat monthly price.

I interviewed XO to ask them more about their solution...
Q: Is this XO’s network? Or terminating to Level3, Deltathree, etc for the voice? I know you guys own your own high-speed networks, but not sure if still need to peer with outside networks or partner, etc.
A: This is delivered over the XO IP network. If the call is to someone off our network, it is terminated to the PSTN. Deltathree is actually a customer of ours, so companies like that are increasing looking to XO for wholesale VoIP solutions. We just recently announced that XO carried 1.6 billion minutes of VoIP traffic in Q2 2005, and deltathree was quoted in that press release.

Q: Is this a SIP-based network and if so, can customers use SIP phones?
A: Customers can use their existing analog phones with XOptions Flex.

Q: Do you require special CPE equipment? i.e. VoIP gateway
A: We install an IP integrated access device at the customer premise and they plug the phones into that box.

Q: Do you replace the corporate PBX or just providing VoIP trunk lines to the existing PBX?
A: Right now, this is for businesses that use lines, not a PBX. We’ll be rolling out an enhancement later this year so customers with PBX can use this.

Q: What do you charge for you terminating to the PSTN?
A: We charge businesses a flat monthly price for the bundled service, which combines voice, internet access and web hosting into a single package. It is priced just like any other traditional bundled voice and data service at a flat rate. It’s a commercial offering, not a wholesale offering. For a good, general overview go to: www.xo.com/flex

Q: What size business are you targetting?
A: This is targeted to small and medium-sized businesses although larger companies could use it for branch locations.

Q: Whose IAD do you use?
A: We’re not disclosing who were using.

“XOptions Flex offers businesses in the Twin Cities the most comprehensive and flexible VoIP services bundle,” said John Unger, vice president and general manager of XO Communications’ Minneapolis sales office. “VoIP is truly revolutionizing the telecommunications industry, and XOptions Flex leverages the power of the Internet to provide a high quality and reliable communications solution that integrates voice and data over a single broadband connection with more valuable features for small and medium-sized businesses that save them time and money.”

The service leverages the latest in VoIP technology to provide customers with next generation communications capabilities, such as unlimited voice calling, dynamic bandwidth allocation, voice virtual private networking (VPN), and a simple Administrative Web Portal. With a broadband connection on the XO IP network, XOptions Flex utilizes XO’s award-winning national IP network and softswitch technology to carry customers’ voice calls more efficiently and cost-effectively than traditional services that rely on the public switched telephone network. In addition, businesses can take full advantage of all of these IP-enabled capabilities and features without having to replace their existing analog phone systems.

“Businesses are ready to adopt VoIP and take advantage of its ability to more cost-effectively improve communications with customers and among employees,” said William Stofega, Research Manager with IDC’s Voice over Internet Protocol (VoIP) Services Program. “The providers that will differentiate themselves are those that offer more features with the flexibility to deliver true business benefits. XOptions Flex provides that flexibility with a simple, integrated VoIP solution that can expand as businesses’ voice and data needs grow.”

Features
XOptions Flex includes more than twenty standard voice features for each phone line including call forward, three-way calling, and voice mail. Key features of the service include:
• Dedicated Internet Access up to 3 Mbps
• Dynamic bandwidth allocation
• Unlimited local calling
• Unlimited inbound and outbound domestic long distance calling
• An easy-to-use Administrative Web Portal for making real-time changes to services
• Web Basic Hosting Package
• Additional voice lines, hosting and other applications can also be added on an a la carte basis.

“XOptions Flex enables businesses to get a better return on their telecommunications budget. In contrast to traditional offerings that waste voice lines when they are idle, XOptions Flex can maximize the speed of data by making use of capacity dedicated to unused voice lines. When there are calls, voice traffic will always have priority. In this way, businesses get maximum utilization and value from their integrated access circuit while ensuring the highest quality of service for voice calls,” added Unger.

Availability
XOptions Flex is now available across the Twin Cities metropolitan area, including:

• Apple Valley
• Blaine
• Bloomington
• Brooklyn Park
• Burnsville
• Coon Rapids
• Eagan
• Eden Prairie
• Edina
• Maplewood
• Minneapolis
• Minnetonka
• Richfield
• Roseville
• St. Louis Park
• St. Paul
• Shoreview
• Stillwater
• Wayzata
• West St. Paul

XOptions Flex is available in major metropolitan areas across the United States, including Akron, Allentown, Atlanta, Austin, Baltimore, Boston, Chicago, Cleveland, Columbus, Dallas, Denver, Detroit, Fort Lauderdale, Fort Worth, Harrisburg, Houston, Jersey City, Las Vegas, Los Angeles, Miami, Memphis, Minneapolis, Nashville, New York, Newark, Oakland, Orange County, CA, Orlando, Philadelphia, Phoenix, Portland, Sacramento, St. Louis, St. Paul, St. Petersburg, Salt Lake City, San Antonio, San Diego, San Francisco, San Jose, Scranton, Seattle, Spokane, Tampa, Trenton, Washington, DC, West Palm Beach, and Wilmington, DE.