ATSI and XO Agree on VoIP Network Expansion

XO Communications, a subsidiary of XO Holdings, Inc. has entered into an agreement with ATSI Communications, Inc. to complete the expansion of ATSI's VoIP network.

Under the agreement, ATSI has doubled its fixed Internet bandwidth to support future growth. The company also now can increase this fixed capacity by 400 percent through the "on-demand" capabilities of XO Communications' Ethernet services. With this expansion, ATSI has not only set the stage for continued growth during the Company's  4th quarter of fiscal year that will begin August 1, but the company has also met the network requirements for its business plan.

While speaking on this development, the Sr. Vice President of Technology and Operations, Ruben Caraveo, they structured a very flexible arrangement with XO Communications that meets their near term needs for fixed capacity, but also allows them to increase bandwidth as needed to meet customers' demand.

He  further stated that "As we continue our emphasis on optimizing margins, the increased network capacity is fundamental to meeting our financial objectives in FY2009."

Digerati Networks, Inc. and Telefamilia Communications are the two wholly owned subsidiaries through ATSI operates.

Digerati Networks, Inc. is a premier global VoIP carrier serving rapidly expanding markets in Asia, Europe, the Middle East, and Latin America, with an emphasis on Mexico. Through Digerati's partnerships with established foreign carriers and network operators, interconnection and service agreements, and a NextPoint powered VoIP network, ATSI believes it has clear advantages over its competition. Telefamilia Communications provides specialized retail communication services that includes VoIP services to the high-growth Hispanic market in the United States. ATSI also owns a minority interest of a subsidiary in Mexico, ATSI Comunicaciones, S.A. de C.V., which operates under a 30-year government issued telecommunications license.

XO Holdings, Inc. is a leading nationwide provider of voice, data and IP services for businesses and carriers.