XO Communications Praises FCC Decision Denying Qwest's Regulatory Forbearance Petitions

Market Wire, July, 2008

BACKGROUND: The Federal Communications Commission today denied, 5 to 0, Qwest's petitions for regulatory forbearance from wholesale pricing rules on "last mile connections" in Denver, Minneapolis, Phoenix and Seattle.

The following comments are attributable to Heather Burnett Gold, senior vice president - external affairs, at XO Communications.

"XO Communications praises Chairman Martin and each of the Commissioners for a unanimous decision denying Qwest's petitions for regulatory forbearance. We thank the U.S. Congress and the state public utility commissions of Arizona, Colorado, Minnesota and Washington for their bipartisan, pro-consumer support of competition.

"Today's FCC action upholds the pro-competitive pricing rules that constitute the heart of the 1996 Telecommunications Act. This decision is a victory for competition and consumers, and ensures that millions of business and residential customers throughout Qwest's region will continue to benefit from choice, innovation and lower prices.

"The FCC reached its unanimous decision through rigorous analysis of market data. The evidence refuted Qwest's arguments and exposed their forbearance petitions as premature.

"Following close after the Commission's unanimous rejection of similar forbearance bids by Verizon, today's FCC action sends a strong message to Qwest and all Baby Bells that attempt to end-run the Telecommunications Act."

About XO Communications

XO, a subsidiary of XO Holdings, Inc. (OTCBB: XOHO), is a leading provider of 21st century communications services for businesses and communications services providers, including Fortune 500 businesses, 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 .

Contact: Jim Crawford Crawford Public Relations T: 703-753-4480 M: 703-498-7315 Email Contact