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XO Carries Over 2 Billion Minutes in Q4

XO announced today that they carried over 2 billion minutes of VoIP traffic in Q4 of 2005, which was an increase of 22% over previous quarter.


Frankly, who cares how much network utilization XO has?  The metric is all wrong.  XO investors should care about the number of subscribers, and the dollars earned per subscriber.  Per minute revenues are trending to zero.  Announcing that the number of minutes carried has increased is like a cable company announcing that the number of bits carried has increased.  What cable investors really want to know is revenue per subscriber.

{ 3 comments… add one }

  • Adam Uzelac January 20, 2006, 8:52 am

    Alec – I completely agree with your point here. How many of these minutes originated on a VoIP-enabled device or an ATA, verses some gigantic GW trunk into a legacy circuit switch?!?! It’s just not interesting to hear how folks are trunking minutes anymore to reduce cost.

    How about reporting on the number of Voice 2.0-directed or enabled “minutes” or calls? This wouldn’t necessarily speak to revenue, but would speak to adoption of a “sexier” call flow! How many “minutes” have been made “relevant” via your Relevance Engine? Now that would be an interesting tidbit of information!!!

    Adam “voiploser” Uzelac

  • Donald Smith January 22, 2006, 2:49 pm

    A famous Simpson’s quote “But I have 52 million shares! What’s fifty two times zero? And don’t tell me it’s zero!” http://en.wikipedia.org/wiki/I_Am_Furious_Yellow

    So are you claiming 2 BILLION times zero is zero?!!! :)

    – Don

  • Alec January 22, 2006, 10:10 pm


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