Earthlink 2003 Annual Report Download - page 11

Increased competition for users of Internet services and content may result in lower subscriber growth rates for our Internet services.
Lower subscriber growth rates may result in lower gross organic subscriber additions or increased churn rates. We continue implementing
plans to address churn, including adding new features to enhance our premium narrowband service offerings. However, we can provide no
assurance that our plans will be successful in mitigating the adverse impact increased churn may have on our subscriber base and operating
results. In addition, competitive factors outside of our control may also adversely affect future rates of customer churn.
The pricing of our Internet access services is subject to competitive pressures that are beyond our control. As the market for Internet
access remains competitive, some providers have charged less for their Internet services to maintain or increase their market share, causing us
to reduce (or preventing us from raising) fees. As a result, our revenues may not grow at anticipated rates, and our business may suffer.
As the ISP market continues to develop and competition intensifies, competitors may merge or form strategic alliances that would increase
their ability to compete with us for subscribers, visitors to our
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websites and advertisers. These relationships may also negatively impact our ability to form or maintain our own strategic relationships.
Telecommunications Industry
The intensity of competition in the telecommunications industry has resulted in significant declines in pricing for telecommunications
services that we purchase, and such declines have had a favorable effect on our operating performance. However, the price declines have
caused some telecommunications companies to experience financial difficulty. Our business could be negatively affected if one or more of our
telecommunications providers were to experience serious enough difficulties to impact service availability or if telecommunications
bankruptcies generally reduced the level of competition among telecommunications providers.
Proprietary Rights
We rely on a combination of copyright, trademark, patent and trade secret laws and contractual restrictions to establish and protect
technology and proprietary rights and information. We require employees and consultants and, when possible, suppliers and distributors to sign
confidentiality agreements. However, there can be no assurance that the steps taken to protect technologies and trade secrets will be sufficient
to prevent misappropriation of our technology and our proprietary rights and information or that competitors will not independently develop
technologies that are substantially equivalent or superior to our technologies. From time to time, third parties have alleged that certain of our
trademarks and technologies infringe on their intellectual property rights. None of these claims has had an adverse effect on our ability to
market and sell services. However, there can be no assurance that those claims will not have an adverse effect in the future or that others will
not assert infringement claims against us in the future.
Employees
As of December 31, 2003, we employed 3,335 permanent and temporary employees, including 1,008 sales and marketing personnel, 1,999
operations and customer support personnel and 328 administrative personnel. None of our employees are represented by a labor union, and we
have no collective bargaining agreement.
In January 2004, as part of our effort to reduce support costs and improve efficiencies, we announced we will increase our reliance on
outsourced contact center service providers and, consequently, will close four contact centers. The closure of the four contact centers is
expected to impact approximately 1,300 employees, primarily customer support personnel.
Available Information
EarthLink files annual, quarterly, and current reports, proxy statements, and other documents with the Securities and Exchange
Commission (the "SEC") under the Securities Exchange Act. The public may read and copy any materials that we file with the SEC at the
SEC's Public Reference Room at 450 Fifth Street, NW, Washington, DC 20549. The public may obtain information on the operation of the
Public Reference Room by calling the SEC at 1-800-SEC-0330. Also, the SEC maintains an Internet web site that contains reports, proxy and
information statements, and other information regarding issuers, including EarthLink, that file electronically with the SEC. The public can
obtain any documents that we file with the SEC at http://www.sec.gov.
We also make available free of charge on or through our Internet web site (http://www.earthlink.net) our Annual Report on Form 10-K,
Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and, if applicable, amendments to those reports filed or furnished pursuant to
Section 13(a) of the Securities Exchange Act as soon as reasonably practicable after we electronically file such material with, or furnish it to,
the SEC.
We also provide a copy of our Annual Report via mail, at no cost, upon receipt of a written request to the following address: