XO Communications

What XO Communications does

XO Communications was a competitive local exchange carrier (CLEC) founded in 1994 and headquartered in Herndon, Virginia, that provided IP communications, networking, and IT infrastructure services to business and enterprise customers across more than 40 major US markets. The company offered a comprehensive portfolio spanning Wide Area Networking (Bandwidth on Demand, MPLS IP-VPN, VPLS, Wireless Backup), Internet Access (Dedicated Internet Access, IP Transit), Ethernet and Private Line Services, Unified Communications/VoIP (XO Hosted PBX, XO Enterprise SIP, XO IP Flex), and Cloud and Managed Services including Application Performance Management and UltraDNS. Underlying technology was based on legacy telecommunications network infrastructure; following the Verizon acquisition, systems were migrated using open standards architectures and Informatica ETL tools. The business model centered on direct enterprise sales of multi-site networking, voice, and managed services to commercial customers, with a horizontal segmentation approach targeting organizations requiring private, secure connectivity and unified communications. Founder Craig McCaw established the company, which at its peak employed 1,001-5,000 people and served more than 10,000 business customers.

In 2017, Verizon acquired XO Communications for $1.8 billion USD. Post-acquisition, Verizon executed a multi-year digital transformation integrating XO's operations, network, and customer base into Verizon's systems. The migration moved 10,000+ customers and millions of data records across 40+ US markets, decommissioned all legacy XO systems, and rebranded former XO products under Verizon's service portfolio (e.g., MPLS IP-VPN became Private IP, XO Hosted PBX became Hosted PBX). The integration is projected to deliver $1.5 billion in net present value through operational synergies. The legal entity XO Communications Services, LLC continues to exist as a wholly-owned subsidiary under Verizon's corporate umbrella, but all operational functions have been absorbed.

Name

XO Communications

Legal name

XO Communications Services, LLC

Website

https://xo.com

Company type

Private

Founded year

1994

Operating status

Acquired

Headcount range

1,001–5,000 employees

Short description

XO Communications was a US competitive local exchange carrier providing WAN, VoIP, Ethernet, internet access, and managed network services to enterprise customers across 40+ major US markets. Acquired by Verizon in 2017 for $1.8B and fully integrated by 2023.

Ownership category

akta.pro rank

Product category

Business Telecommunications Services

NAICS

Wired Telecommunications Carriers (517111), Wired and Wireless Telecommunications Carriers (except Satellite) (51711), All Other Telecommunications (517810)

SIC

Telephone Communications (No Radiotelephone) (4813), Communications Services, Nec (4899)

akta.pro primary industry

Network Backbone & Core IP Transport (Long-Haul/Metro IP) (HDAIAFAG)

akta.pro secondary industry

Managed Internet & Value-Added ISP Services (Managed Router/Wi-Fi, Security, Filtering) (HDAIADAJ)

Keywords

• Business network services
• Wide area networking
• Managed voice services
• Dedicated internet access
• Enterprise VoIP solutions

Headquarters

HQ city

Herndon

HQ country

United States

HQ region

North America

Markets served

GTM type

B2B

Offering type

Services

Cost components

Infrastructure, Personnel, Technology or R&D, Operations, Marketing or Sales

Distribution channels2 records

Marketing channels2 records

Core offering

XO Communications provides IP communications, networking, and IT infrastructure services to business customers. The portfolio includes wide area networking (MPLS IP-VPN, Bandwidth on Demand, VPLS, Wireless Backup), dedicated internet access and IP transit, Ethernet and wavelength private line services, VoIP and hosted PBX solutions, plus managed services including application performance management and DNS. Following Verizon's 2017 acquisition, all services have been migrated to Verizon's billing and network management systems under the Verizon Enterprise Center.

Product overview

XO Communications was a telecommunications company that offered a comprehensive portfolio of network, voice, and managed services. The product suite included Wide Area Networking solutions (Bandwidth on Demand, MPLS IP-VPN, VPLS, Wireless Backup), Internet Access (Dedicated Internet Access, IP Transit), Ethernet and Private Line Services (Ethernet Hub, Ethernet Private Line, Wavelength), and Unified Communications VoIP services (XO Hosted PBX, XO Enterprise SIP, XO IP Flex). Additional offerings included cloud and managed services such as Managed Services and Application Performance Management, plus DNS services through the UltraDNS Management Portal. The company was acquired by Verizon in 2017 and its services have since been migrated to Verizon's billing and network management systems.

Differentiator

Problem solved

Functional benefit

Products and services

• XO Hosted PBX A hosted IP telephony service providing business phone capabilities with features like auto attendant, call routing, and voicemail for business customers.
• XO Enterprise SIP Session Initiation Protocol-based trunking service for enterprise voice communications with scalability and reach.
• XO IP Flex Flexible IP-based voice service with VPN capabilities for business communications, supporting distributed locations.
• Bandwidth on Demand Wide area networking solution that allows dynamic allocation of bandwidth as needed across business locations.
• MPLS IP-VPN Multi-Protocol Label Switching based VPN service for secure private connectivity across multiple business locations.
• VPLS Virtual Private LAN Service enabling geographically distributed sites to connect over a simulated LAN.
• Wireless Backup Wireless connectivity backup solution providing redundancy and business continuity for network outages.
• Dedicated Internet Access Business-class dedicated internet access delivered over an award-winning network.
• IP Transit IP transit service for internet backbone connectivity and routing.
• Ethernet Hub Centralized Ethernet connectivity solution for business locations.
• Ethernet Private Line Point-to-point private line service using Ethernet technology for secure dedicated connections.
• Wavelength High-speed wavelength service for large data transfers and high-capacity connections.
• Long Distance Long distance voice calling services for business communications.
• Toll Free Numbers Toll-free telephone number services for customer engagement.
• Managed Services Hosted solutions and network management tools for flexible and cost-effective business management.
• Application Performance Management Monitoring and management service for business applications to ensure optimal performance.
• XO DNS (UltraDNS) Managed DNS portal for managing domain name system services, continued for former XO customers.

Quantifiable outcome

• $1.5 billion in projected net present value through operational synergies

Segments1 record

Ideal customer profiles1 record

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators4 records

Recent moves5 records

Expansion highlights3 records

Broad incumbents

• CenturyLink (Lumen Technologies): A Tier-1 incumbent carrier offering the same suite of enterprise services as XO — MPLS, Ethernet, UCaaS, managed WAN — but at significantly larger national scale post Level 3 acquisition.
• Comcast Business: Business services arm of a major MSO offering dedicated internet, Ethernet, and UCaaS to mid-market and enterprise customers across 40+ US markets — overlapping with XO's geographic and product footprint.
• AT&T Business: Tier-1 incumbent providing dedicated internet, MPLS, Ethernet, VoIP, and managed services to enterprise and government customers, directly overlapping with XO's full product portfolio at much greater scale.

Regional players

• Tata Communications: Global enterprise network and UCaaS provider offering MPLS, Ethernet, and managed services to multinationals, comparable to XO's enterprise portfolio but with primary reach outside the US.

Direct peers

• Cogent Communications: Global Tier-1 IP transit and enterprise connectivity provider whose IP transit and dedicated internet access services directly overlapped with XO's Internet Access product line.
• TW Telecom: Enterprise-focused CLEC offering Ethernet, MPLS, and dedicated internet services with a comparable mid-market and enterprise customer profile to XO before its acquisition by Level 3.
• Zayo Group: Operates a fiber-rich backbone and offers dedicated internet access, Ethernet, wavelengths, and managed services to enterprise and wholesale customers, mirroring XO's network-centric value proposition.
• Masergy Communications: Enterprise UCaaS, SD-WAN, and managed network services provider with a comparable mid-market and enterprise focus to XO's Hosted PBX and managed WAN portfolio.
• Level 3 Communications: Pre-acquisition, Level 3 was a direct competitor to XO in enterprise WAN, MPLS, dedicated internet access, and wavelength services; now part of Lumen Technologies, it remains the closest comparable US enterprise fiber carrier.
• Windstream: Provided enterprise WAN, MPLS, UCaaS, and dedicated internet services across a national footprint, overlapping directly with XO's product mix and SMB/enterprise go-to-market motion.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat3 records

Key risks6 records

Key highlights6 records

Customer concentration

• Xx.com/XOComm
• Facebookfacebook.com/XOCommunications
• LinkedInlinkedin.com/company/xo-communications

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments1 record

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about XO Communications