U.S.-based XO Communications is expanding its services to Canada, hoping to capture some of the business market with a range of telecommunications services due to its extended fibre network in Toronto.
XO Communications made the announcement on Tuesday, citing the “growing demands” of its customer base as rationale to its Canadian move. With enterprise and wholesale customers seeking out more global connectivity, bridging the gap into Canadian markets was really only a matter of time.
The arrival of XO Communications will also give the small-to-medium business market in Canada another slice of competition.
“As the largest network hub in Canada and a major hub in North America, Toronto is a key business centre for the finance, high-tech, media and telecommunications industries,” said Don MacNeil, XO’s chief marketing officer. “Our expansion into Canada will enable XO to provide high-capacity network services to better serve businesses like these on both sides of the border, whether they need connectivity in Toronto or high-speed access to markets in the U.S.”
XO Communications will be offering high speed network services to business clientèle, using the Denver-based Cologix as a partner in the arrangement. Cologix connects to more than 150 telecommunications companies and is a “network neutral” interconnection and colocation company providing services from Dallas to Vancouver and Toronto.
Cologix’s Toronto facility provides support for over 150 customers in Toronto’s carrier hotel facility. They boast over 30,000 square feet of storage and support with seven data centres in the building that directly connect to the Toronto Internet Exchange.
“We are thrilled that XO Communications has chosen our 151 Front Street data centre to leverage their expansion into Toronto,” said Sean Maskell, president of Cologix Canada. “We are committed to enable XO to reach new customers, sustain their growth goals and provide them with robust connectivity, all backed with unparalleled local customer support and flexibility to meet their growth requirements.”
XO Communications’ expansion into Canada typifies the ground many companies are trying to make in the small to medium business sectors. China Unicom opened up an office in T-Dot last month to provide support for telecommunications companies looking to expand connectivity to China, while some Canadian companies have been making strategic purchases to pad their rosters. Rogers, for instance, snagged both Blink and Atria in a bid to expand their capabilities in the sector.