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XO Communications (Quote) is offering an alternative for
competitive carriers wary of negotiating access deals with Baby Bells after
last month's seismic shift in telecom regulatory policy.
The facilities-based carrier is providing wholesale local voice, data and
Internet service in 36 U.S. markets, including Boston, New York, San
Francisco and Washington, D.C.
The offering is aimed at carriers catering to businesses and includes
features like call-forwarding, three-way calling, caller ID, directory
assistance and voicemail.
Last month, the Bush administration
did not appeal
a lower court ruling that tossed out regulations forcing Baby
Bells -- BellSouth (Quote) SBC, Qwest (Quote), and Verizon (Quote) -- to provide discounted access to
their lines for competitors.
Supporters of the government's decision said it removed heavy-handed
government regulation, while detractors like AT&T (Quote) warned it
would curb competition and lead to higher rates for consumers and
businesses.
The decision is having a ripple effect throughout the
communications industry. XO sees opportunity.
"We have seen an uptick in inquiries since the legal rulings," Chad Couser,
an XO spokesman, told internetnews.com "XO has signed several deals
with some regional CLECs (define) and are in discussions with some large carriers."
In addition to offering an alternative to the Baby Bells, XO does not require
carriers to risk the capital necessary to build out their own
facilities-based networks, the company said. XO is only providing wholesale services to support business
customers.
"For the service to support residential customers, there are some network
modifications that need to be made," Couser said. "But, we are reviewing
this option, as well."
XO invested heavily in building out a network in the late 1990s, but
faltered during the telecom and Internet downturn eventually filing for
Chapter 11 bankruptcy reorganization.
XO emerged
from Chapter 11 in January 2003, no longer creaking under its debt load.
And last month the company closed its $322 million acquisition of Allegiance
Telecom's assets, expanding its coverage area and its services for
small-to-medium sized businesses. The Allegiance deal laid the groundwork
for today's move. In all, XO now has more than 900 local Points of Presence
(define).
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