XO Communications (OTC BB: XOHO) is playing into its customer's needs for wireless/wireline converged service space by establishing a Mobile Virtual Network Operator (MVNO) relationship with Sprint (NYSE: S).
Under the terms of the agreement, Sprint will deliver MVNO wireless services to XO, including its Wholesale Mobile Integration (WMI) services, to provide a converged wireless/wireline solution to its business customer base.
Leveraging Sprint's WMI service and wireless network, XO will be able to offer 4G wireless services, including its FMC (fixed-mobile convergence) solution.
The combination makes sense from a number of angles. Having already developed a wide range of VoIP, trunking and in-building WiFi network products, XO can now enable customers to access these services from their traditional cell phones or smart phones.
A future cost saving element of the XO/Sprint solution will enable customers who place calls on their mobile phones inside their premises to be connected via WiFi access points and to be routed over existing wireline network infrastructure. When they go outside the office, the mobile device will connect to the Sprint wireless network.
While XO has become a well-established wireline provider in the SMB market, they lacked a mobile service capability that plays into the mobile nature of their customers. By partnering with Sprint, the CLEC instantly gets that capability with the possibility of upselling the FMC service to existing customers.
- see the release
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