XO Communications this week said it will launch a bundled VoIP offering for small and medium-sized businesses later this quarter.

The bundled service, called XOptions Flex, will go up against competitive services from RBOCs, IXCs, CLECs and cable MSOs in XO's footprint.

XOptions Flex combines unlimited local and long-distance calling, dedicated Internet access (DIA), Web hosting, dynamic bandwidth allocation and voice VPN capabilities for one flat monthly rate on a single bill. The services package is delivered over XO's softswitch-enabled national IP network.

The service offers businesses a T-1 DIA circuit with five to 16 voice lines, a high-speed option up to 3M bit/sec and an administrative portal for configuring features and feature changes. Pricing varies by market and by length of contract, and a base package includes a T-1, five voice lines, unlimited local and domestic long-distance calling, Web hosting and an administrative portal.

Additional voice lines cost $40 per line. Additional hosting and other applications can also be added on an a la carte basis, XO says.

XOptions Flex will compete with bundled offerings from Cbeyond, Qwest, MacLeod USA, MCI and Time Warner in XO's footprint. Of these, Cbeyond offers the closest match to XOptions Flex because it's based on an all-IP network with softswitches, XO says.

XO is using Sonus softswitches and BroadSoft application servers as the underpinnings of XOptions Flex. XO says it delivers more than 600 million minutes of customer VoIP long distance traffic each month.

XOptions Flex will be available in Boston, New York and Washington, D.C., in early March, followed by nationwide availability on April 15.