7/24/01
XO Announces Multi-Year $100+Million LD Deal with Nextel
XO Adds Another Fortune 500 Account to Growing Enterprise Segment Successes
RESTON, VA - XO Communications, Inc. (NASDAQ:XOXO), one of the world's fastest growing providers of broadband communications services, announced today that it has arranged to enter into a multi-year agreement worth more than $100 million to provide telecommunications services for Nextel Communications, Inc. (NASDAQ:NXTL), a leading provider of fully integrated wireless communications services.
Under the terms of the contemplated agreement, XO will serve as one of the primary underlying inter-city network services provider throughout the United States for Nextel's long distance services. The contract was the result of an extensive request for proposal (RFP) process initiated by Nextel that drew responses from numerous national telecommunications providers.
"After an extensive review of the carriers who responded to our RFP we determined that the combination of high service levels, innovative back office solutions and overall value that XO presented made this the right decision for Nextel," said Drew Caplan, vice president of network services for Nextel. "In addition to reducing our network expenses, XO's flexibility in billing solutions will be a long-term benefit for Nextel."
"We're thrilled to have earned this piece of business," said Nate Davis, XO President and Chief Operating Officer. "An agreement of this magnitude always attracts the largest and most capable telecommunications providers. Adding Nextel to the growing list of Fortune 1000 companies that have chosen XO as a service provider over the past 18 months further demonstrates the significant and successful evolution of the capabilities and services that XO is now offering businesses throughout the United States."
Today's announcement expands a solid business relationship that has developed between XO and Nextel over the past few years. In addition to the long distance services announced today, XO currently provides metro fiber services to "backhaul" network traffic from Nextel cellular antennas to network connections in markets throughout the country. Additionally, Nextel is currently XO's exclusive provider of wireless phone service.
About XO Communications
XO Communications is one of the world's leading providers of broadband communications services offering a complete set of communications services, including: local and long distance voice, Internet access, Virtual Private Networking (VPN), Ethernet, Wavelength, 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 communications services in 62 markets throughout the United States. The Company is also one of North America's largest holders of fixed broadband wireless spectrum, with licenses covering 95 percent of the population of the 30 largest U.S. cities.
About Nextel
Nextel Communications Inc., based in Reston, Va., is a leading provider of fully integrated wireless communications services and has built the largest guaranteed all-digital wireless network in the United States covering thousands of communities across the United States. Nextel and Nextel Partners, Inc., currently serve 188 of the top 200 U.S. markets.
For more information contact:
Todd Wolfenbarger / XO Communications
Media and Industry Analysts
703-547-2011 or 703-675-3496
Lisa Miles / XO Communications
Financial Analysts
703-547-2440