XO Communications Launches Fixed Mobile Convergence Trial with Sotto Wireless

HERNDON, VA and SEATTLE, WA - XO Communications, a leading provider of 21st century communications for businesses and communications service providers, and Sotto Wireless, a leading provider of all-in-one business communications services, today announced that they will begin trials of a groundbreaking fixed mobile convergence (FMC) solution that will help businesses with mobile workforces get better control over telecommunications costs while significantly enhancing employee mobility and productivity.

Beginning with an initial trial in Seattle, the XO-Sotto FMC solution, to be called the Unwired Office™, combines XO Communications’ nationwide IP networking capabilities with Sotto Wireless’ all-in-one wireless and office phone communications service to offer the first, true single device FMC solution for businesses. Unlike other FMC solutions that simply allow calls to ring on multiple fixed and mobile devices, the Unwired Office solution integrates customers’ fixed and wireless communications services into a single platform with one smartphone that can be used in the office or on the go for voice, email and Internet access as well optional IP desk phones.

“Our business customers are looking for XO to deliver communication services offering the simplicity and convenience of one-number access, and a single voice mail box whether employees are in the office or on the road,” said Tom Cady, president of XO Business Services. “With Sotto Wireless, we will be bringing real value to our customers by offering a comprehensive solution designed to boost productivity and lowers costs. This solution continues our tradition of bringing innovative, break-through technology solutions to our customer base.”

“Through our relationship with XO Communications, the business benefits of the Unwired Office are now available to companies in the Seattle market, and soon across the U.S.,” said Rod Nelson, CEO of Sotto Wireless. “This service simplifies the way businesses communicate and improves their relationships with their own customers. With one phone, one number, and one inbox, you never lose touch with your customers.”

Best of Both Worlds: Office Telephony and Mobility
The Unwired Office merges fixed and mobile communications by combining a business’ office phone (PBX) system, broadband network access and mobile phone service a single, unified platform so employees can have the same communications experience inside and outside the office. Features include: high-speed dedicated Internet access; hosted private branch exchange (PBX) system providing key PBX features in and out of the office; individual smartphones with one telephone number for office and mobile calling – as well as wireless email and messaging; optional IP desk phones; and anywhere coverage through in-office WiFi networks and wireless service. In addition, the service enables businesses to transparently extend the office phone system to the home or branch office by using existing cable or digital subscriber line broadband services.

The service uses the latest dual-mode smartphones from Nokia, such as the Nokia E61i, that feature both office Wi-Fi and cellular network connectivity options, full keyboards, and productivity applications. The hybrid wireless capabilities allow employees to use the Nokia smartphones to make calls over Wi-Fi networks and use cellular networks when employees are away from the office. Wi-Fi office coverage helps customers save money and airtime compared to cellular only phones that are often used in the office.

“In today’s fast-paced, highly mobile work environment, businesses can benefit from services that help them shift from fixed, legacy networks to IP-based, fixed-mobile convergence services,” said Ted Chamberlin, Research Director, Gartner, Inc. “Businesses will need to choose a communications provider who will not only be able to support the transition to newer IP based communications services but will also be a change agent for increased productivity through enhanced communications-enabled business process services.”

Usage of mobile phones at the office continues to grow at an unprecedented rate. According recent industry research reports, 50 percent of employees use a mobile phone for work1 – and 28 percent use mobile phones as their primary phone2. In addition, more than 40 percent of a business mobile phone user’s time is spent away from the desk, with nearly half of that time still on company premises3. In addition, nearly one quarter of mobile phone users report using their mobile phones while seated at their desk3. The Unwired Office solution helps business get better control of these costs and provides the following benefits:
• Employees stay connected and stay productive throughout the business day, regardless of physical location with easy one-number access
• Eliminate redundant spending and lower operating costs
• Fully integrated wireless email, calendar and contacts increase employee efficiency
• Unlimited domestic long distance and in-building wireless usage
• Self manage office and wireless communications with ability to monitor and manage telecom usage costs in real time

For more information about the service, call XO Communications at (206) 315-6398.

About XO Communications
XO Communications, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO), is a leading provider of 21st century communications services for businesses and communications services providers, including 50 percent of the Fortune 500 and leading cable companies, carriers, content providers, and mobile operators. Utilizing its unique and powerful nationwide IP network and extensive local metro networks and broadband wireless facilities, XO offers customers a broad range of managed voice, data and IP services in 75 metropolitan markets across the United States. For more information, visit www.xo.com.

About Sotto Wireless
Sotto Wireless, Inc. is a leading provider of all-in-one business communications services that combine the mobility of cellular phones with the functionality of office phone systems into one simple service. Sotto’s platform includes the latest phones and integrated Web-based management tools, transforming customers’ communications into a competitive asset and lowering costs. For more information on Sotto Wireless, visit www.sottowireless.com.

1 Simpson Carpenter study, cited in “The State of Workforce Mobility” whitepaper by Nokia, April 2006
2 IDC, “Extending the Enterprise PBX to Mobile Communications: Single Number Dialing” (IDC #201463), May 2006
3 Strategy Analytics, “Mobile Business Application Outlook”, January 2006

For more information contact:

Chad Couser / XO Communications
703-547-2746
chad.couser@xo.com