Earthlink 2004 Annual Report Download - page 5

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wireless and/or satellite broadband services in multiple markets throughout the U.S. We will continue our efforts to expand our broadband
footprint by pursuing new partnerships and relationships with wholesale broadband providers. We continue to explore, evaluate, research and
test the commercial feasibility of emerging alternative broadband access technologies, including power line, fixed wireless or other non-
terrestrial based means of access, to maintain and expand our broadband footprint and/or deliver broadband services more cost effectively.
The market for value-
priced narrowband access services has grown over the past several years by attracting households new to the Internet
or current Internet users interested in reducing their cost of Internet access. We provide value-priced Internet access services through our
PeoplePC Online offering. 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 have grown our value-priced narrowband subscriber base
with the PeoplePC Online offering from 424,000 subscribers at December 31, 2003 to 876,000 subscribers at December 31, 2004. We
anticipate the market for value-priced narrowband access will continue to grow, and we anticipate increasing our sales and marketing efforts
and expenses for the PeoplePC Online offering to increase our value-priced narrowband customer base.
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
SM
, EarthLink Spyware Blocker
SM
, TotalAccess®
2005 with Parental Controls (including
the EarthLink Kid Patrol Browser), Virus Blocker
SM
, ScamBlocker
TM
, web browsing acceleration-related applications for value-priced and
premium narrowband subscribers, Norton
TM
Security products and email-by-phone. In addition, we provide a customizable Personal Start
Page
TM
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 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 for
our high-speed and dial-up Internet services according to the J.D. Power and Associates 2004 Internet Service Provider Residential Customer
Satisfaction Study
SM
and the 2004 PC Magazine Readers’ Choice Award for dial-up services. 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 operating margins to fund growth
We are focused on delivering our 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.
2