Earthlink 2005 Annual Report Download - page 8

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Web hosting
We lease server space and provide web hosting services to companies and individuals wishing to have an Internet or electronic commerce
presence. We had approximately 127,000 web hosting accounts as of December 31, 2005. For the year ended December 31, 2005, web hosting
revenues were $40.7 million, or 3% of total revenues.
VoIP service
In October 2005, we began offering EarthLink trueVoice, a competitive alternative to traditional phone service, to EarthLink and non-
EarthLink high-speed Internet access subscribers. EarthLink trueVoice uses VoIP technology, which enables voice communications over the
Internet through the conversion of voice signals into data packets. VoIP revenues consist of monthly fees charged to customers for our
telephone service plans, activation fees, equipment fees, usage fees and fees for enhanced calling services. For the year ended December 31,
2005, VoIP service revenues and subscribers were not significant.
Marketing Channels
Our sales and marketing efforts consist of the following programs:
Advertising. We advertise our services in print, billboard, electronic and broadcast media. We utilize various campaigns which may
include national and regional television, radio, print and Internet ads. Our campaigns may also include sponsorships of various community
programs and sporting events.
Direct Marketing. We promote our services directly to customers in the form of direct mail offers, which generally advertise a free or
discounted trial period to incent consumers to sign-up for our services, and through promotional inserts in packages, periodicals and
newspapers.
Original Equipment Manufacturers. We have marketing arrangements with a number of leading hardware and software manufacturers
to include our Internet access software pre-installed on or included with their products. Our hardware and software manufacturing partners
include, among numerous others, Dell Inc. (“Dell”) and Hewlett Packard.
Sprint Partnership. We have a relationship with Sprint Nextel Corporation (“Sprint”) in which Sprint purchases wholesale narrowband
and broadband services from us for resale. During the year ended December 31, 2005, our relationship with Sprint generated more than 10% of
our total gross organic subscriber additions.
Retail. We market our products and services through retail outlets such as Best Buy, Fry’s, Circuit City, RadioShack, Staples and
OfficeMax.
Affinity Marketing.
Our affinity marketing partners include many AAA clubs, AARP and several airlines including Delta, Northwest and
Southwest. Partners typically bundle our Internet access software with their own goods or services to create a package that promotes EarthLink
to potential customers.
Member Referral Program. We believe existing customers are among our most important marketing tools. We currently waive one
month of standard Internet access service fees for each customer who refers a new customer to EarthLink’s service.
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