Article Excerpt:
TWST: What is XO Holdings?Mr. Freiberg: XO Holdings operates through two companies; the first company is a competitive local exchange carrier (CLEC), called XO Communications, which has been around for 10 years now. The CLEC business is a large business, with over $1.4 billion in annual revenue and approximately 150,000 customers. The second business is Nextlink Wireless, and it's a startup. We just did the launch and hired a new CEO for Nextlink this year. This company has the most LMDS spectrum across 75 markets here in the US and is now hiring and building a business plan to start providing services utilizing that spectrum.
TWST: What are the dynamics of your competitive landscape as far as
consolidation, new entrants, and barriers to new entries? What's the
differentiator for XO?
Mr. Freiberg: On the wireline side, the competitive differentiator is the scale.
We are the largest competitive local exchange carrier in the USA. We offer metro
fiber services in 75 markets. In those metro networks, it's not likely that we
are going to see another boom again. So there is a limited number of metro fiber
networks out there, and we are the only nationwide CLEC, so we are able to
leverage that network.
On the wireless side, it really is about opportunities. Nextlink has won through
FCC auctions an average of 1 gigahertz of spectrum per market. Having this much
spectrum in each market gives us a capability to offer a much better quality and
higher capacity service to our customers, and there is significant overlap
between Nextlink spectrum and XO metro fiber networks.
Tickers included in this excerpt: XOHO
TWST Newsletter
For more information call (212) 952 7433. The Wall Street Transcript does not endorse any of the comments made by interviewees, and does not make stock recommendations.