Earthlink 2005 Annual Report Download - page 23

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The market for VoIP services may not develop as anticipated, which would adversely affect our ability to execute our voice strategy.
The success of our VoIP service depends on growth in the number of VoIP users, which in turn depends on wider public acceptance of
VoIP telephony. The VoIP communications medium is in its early stages, and it may not develop a broad audience. Potential new users may
view VoIP as unattractive relative to traditional telephone services for a number of reasons, including the need to purchase computer headsets
or the perception that the price advantage for VoIP is insufficient to justify the perceived inconvenience. Potential users may also view more
familiar online communication methods, such as e-mail or instant messaging, as sufficient for their communications needs. There is no
assurance that VoIP will ever achieve broad public acceptance.
We may not generate the returns anticipated on our investments to construct and deploy municipal wireless broadband networks.
An important element of our business strategy is to deploy competitive alternatives to DSL and cable for delivering broadband Internet
access services, reflected in our municipal wireless initiative. In October 2005, Wireless Philadelphia selected us to develop and implement a
citywide wireless broadband network and offer high-speed public Internet access to the residents, visitors and businesses of Philadelphia,
Pennsylvania. Also in October 2005, the city of Anaheim, California selected us to build a wireless broadband network. We are pursuing
additional similar arrangements with other municipalities, but there is no assurance that we will be successful in these efforts. This initiative
may result in significant capital expenditures in future periods to develop, implement and build wireless broadband networks in various
municipalities, and we may not generate the returns anticipated on the capital expenditures and operating losses that may be incurred in this
effort. We may not be successful in developing, implementing, and executing our municipal wireless strategy, and there can be no assurance
that the municipal wireless broadband service offerings will be commercially successful.
Our third-party network providers may be unwilling or unable to provide Internet, wireline and wireless telecommunications access.
Our ability to provide Internet access, voice services and customer support to our subscribers will be limited if third parties are unable or
unwilling to provide telecommunications and last mile access to our existing and future customers, we are unable to secure alternative
arrangements upon partial or complete termination of third-party network and voice provider agreements or there is a loss of access to third-
party providers’ networks for other reasons.
If we lose access to third-party networks under our current arrangements, we may not be able to make alternative arrangements on terms
acceptable to us, or at all. We currently do not have any plans or commitments with respect to alternative arrangements. While our contracts
with our third-party providers require them to provide commercially reliable service to us and our subscribers, the performance of third-party
providers may not meet our or our customers’ requirements and we may not be able to procure alternative services, which could materially
adversely affect our business, financial condition and results of operations.
We utilize third-
parties for technical and customer support and certain billing services, and our business may suffer if our partners are
unable to provide these services, cannot expand to meet our needs or terminate their relationships with us.
Our business and financial results depend, in part, on the availability and quality of our customer support services and billing services. We
outsource a majority of our technical and customer support functions. As a result, we maintain only a small number of internal customer
service and technical support personnel. We are not currently equipped to provide the necessary range of customer service functions in the
event that our service providers become unable or unwilling to offer these services to us. Our
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