Earthlink 2002 Annual Report Download - page 5

from market research firms and industry publications.
Aggressively grow our broadband business
EarthLink provides broadband Internet access services in markets throughout the U.S., and as of December 31, 2002, we had
approximately 779,000 broadband subscribers. We focus on offering our customers a choice of technologies through which they can gain high-
speed access to the Internet. We have established a national broadband footprint via multiple wholesale vendors, enabling us to deploy Digital
Subscriber Line ("DSL"), cable, fixed wireless and/or satellite broadband solutions in multiple markets throughout the U.S. We believe that our
ability to leverage our existing narrowband subscriber base by migrating those subscribers to our broadband service offering is a key
competitive advantage and will enable us to grow our broadband subscriber base.
Increase the range of services offered
We are focused on deploying products and services that enhance customers' Internet experiences as well as extending Internet access
beyond the personal computer. During 2002, we launched a number of applications and services designed to enhance customers' Internet
experiences, including Pop-Up Blocker, TotalAccess® 2003, email-by-phone, and digital music and photography services. We also launched
mobile wireless Internet access services over a variety of new devices. In addition, we continued to expand and improve our DSL service
targeted at SOHO (small office/home office) customers. We selected Google™ as our preferred search partner to provide the most relevant, up-
to-date search results for our customers. We intend to create additional revenue opportunities from value-added products and services,
including expanding the availability of home networking services; offering special security or privacy services, entertainment-related Internet
products and services, and a suite of communication products; increasing the functionality of our broadband and narrowband services by
adding features related to voice services; and expanding the wireless service offerings.
Targeting the value segment
With PeoplePC, we acquired a platform that will allow us to participate in the growing value segment, where price is a significant factor in
the buying decision. Continued declines in telecommunications costs have allowed companies to begin offering Internet access services with
limited functionality and support services at comparatively lower prices. We will begin aggressively marketing this lower-
priced, differentiated
service in the first half of 2003, and we believe that the value-priced offering will enable us to grow our narrowband subscriber base.
Leverage the scale of our large customer base and existing infrastructure
We focus on leveraging our national footprint by continuing to migrate customers to lower cost telecommunications networks, utilizing
volume discounts and managing the network to increase its efficiency. We will continue to manage operating expenses and attempt to increase
them more slowly than
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revenues, leveraging our infrastructure as we grow our customer base and revenues. Finally, we will remain focused on improving our
marketing effectiveness and utilizing the most cost effective channels.
Consistent with these efforts, in January 2003, we announced a comprehensive plan designed to streamline our call center facilities and
reduce overall costs while maintaining our commitment to providing award winning customer service. The comprehensive plan entails the
closure of certain technical support and customer service facilities and the transition of inquiries previously handled by personnel at these
facilities to our remaining call centers and existing outsourced call center providers.
Pursue selected acquisitions
Over the past two years, we have acquired two businesses and purchased selected assets of another company, all of which expand our
service offerings. In December 2001, we acquired Cidco, a developer, distributor and provider of email appliances and related services. The
acquisition provides additional capability to deliver Internet services through home devices other than personal computers. The acquisition also
extends the reach of our products and services to new segments of Internet users, including consumers who are new to the Internet or are not
interested in purchasing personal computers and those seeking alternate ways to access email and personalized Internet content within their
homes.
In January 2002, we acquired the key assets of OmniSky Corporation ("OmniSky"), a provider of wireless data applications and services
for use on mobile devices. The acquisition of the OmniSky platform and its award-winning wireless data service allows us to offer wireless
Internet access services on selected handheld devices.
In July 2002, we acquired PeoplePC, a provider of value-priced Internet access using a cost-efficient technology platform. PeoplePC also
offers a customizable service for corporations, associations and other distribution opportunities. PeoplePC's product capabilities complement