Earthlink 2005 Annual Report Download - page 6

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offering our suite of products utilizing the wireless broadband networks, which will include residential high-speed service, wholesale services
for other providers and occasional use services. In addition, we expect to leverage our wireless broadband network to offer voice services and
value-added services.
We are actively pursuing additional similar arrangements with other municipalities. These municipal wireless initiatives are part of our
efforts to deploy a competitive alternative to DSL and cable for delivering broadband Internet access services. In 2006, we expect to expand
our wireless broadband footprint and grow our wireless broadband subscriber base to increase revenues.
SME solutions. In December 2005, we entered into an agreement to acquire New Edge Holding Company (“New Edge”), a single-
source national provider of secure multi-site managed data networks and dedicated Internet access for businesses and communications carriers.
The acquisition of New Edge will enable us to expand our business in the growing small and medium sized business market. Upon completion
of the acquisition, we expect to build upon our existing portfolio of SME products, including web hosting, security and VoIP services, and we
expect to expand into new growth markets, such as Virtual Private Networks (VPN), wide area networking and wholesale solutions.
Market high quality, differentiated products and services
We continue to focus significant resources on attracting and retaining subscribers by providing them with fast and reliable access to the
Internet through a variety of platforms and services. We are focused on deploying products and services that enhance customers’ Internet
experiences, such as spamBlocker, Pop-Up Blocker , EarthLink Spyware Blocker , TotalAccess with Parental Controls (including the
EarthLink Kid Patrol Browser), Virus Blocker , ScamBlocker , EarthLink Protection Control Center, web browsing acceleration-related
applications for value-priced and premium narrowband subscribers and various security products. In addition, we provide a customizable
Personal Start Page that lets subscribers create their own launch point to the Internet. As a result, subscribers can search, organize, shop and
communicate—via email, chat or Instant Messaging—all from one convenient location. We also offer premium services such as Internet call
waiting, email-by-phone, additional email storage or email addresses, gaming, music downloads and a photo center. We are devoted to
delivering innovative products, services and applications that customers can use to enhance their Internet experiences and believe customer
adoption of these innovative tools improves customer loyalty and reduces churn.
We have always been committed to delivering high-quality customer service and technical support and have been recognized by several
industry publications and groups as a leader in providing excellent customer service, including the highest ranking in customer satisfaction
according to PC World magazine’s ISP Satisfaction Survey. We believe that a high level of customer satisfaction allows us to compete more
effectively. We focus on the customer relationship in an effort to increase loyalty and reduce churn.
Improve or maintain operating margins on our existing service offerings to fund growth initiatives
We are focused on delivering our existing services more cost effectively by capitalizing on the continuing decline in telecommunications
costs, leveraging the benefits of scale throughout our business, reducing and more efficiently handling the number of calls to contact centers,
exploring cost effective outsourcing opportunities and streamlining our internal processes and operations. We leverage our national footprint by
continuing to migrate customers to lower cost telecommunications networks, utilizing volume discounts and managing our network to increase
its efficiency. We are also focused on improving our marketing effectiveness and utilizing cost effective distribution channels.
During the past three years, we implemented plans to close and streamline contact center facilities to reduce overall costs, and we realized
reduced costs as a result of completing these plans. We will continue to manage operating expenses, devoting resources to evaluate the cost
structure of our business, and we intend to leverage our infrastructure as we seek to expand our service offerings.
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