XO Communications, a provider of network services in 75 metropolitan markets across the U.S., will use gear from Hatteras Networks to augment its service offerings.

The contract is worth several million dollars, the companies said in a joint statement. XO will use the Hatteras equipment in the 60 markets where it offers Ethernet services.

The deal is one of the largest signed to date for Hatteras.

Hatteras, which works with a growing number of telecommunications providers in the U.S. and Europe, enables the carriers to provide high-speed services over existing network infrastructure without having to upgrade to fiber. Among its biggest customers is BellSouth, which is now part of AT&T.

Hatteras Networks’ so-called “Mid-Band Ethernet” equipment enables customers to choose bandwidth access at various speeds.

"After a successful product launch with Hatteras Networks and volume roll-out in 2006, the decision to go with Hatteras as our sole supplier of Mid-Band Ethernet equipment was simple," said Tom Cady, president of XO Business Services. "Hatteras Networks’ solution performs at the highest levels in the industry and uniquely enables XO to expand the availability of our Ethernet service offering to business customers over existing copper facilities nationwide."

XO is based in Reston, Va. It offers a variety of voice, Internet and data services.

Hatteras Networks gear enables high-speed access over existing networks at up to 45 megabits per second. A traditional T-1 circuit offers 1.54 megabits per second. Its equipment is used by network service providers across five continents.