Earthlink 2005 Annual Report Download - page 39

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(a)
Subscriber counts do not include nonpaying customers. Customers receiving service under promotional programs that include periods of
free service at inception are not included in subscriber counts until they become paying customers.
(b)
In 2003, we executed an agreement with Charter Communications, Inc. (“Charter”) pursuant to which we transitioned from providing
wholesale broadband services to Charter in certain markets to offering EarthLink Experience, a premium, add-on Internet service, to
Charter subscribers in these markets for a smaller monthly fee. Due to the reduction in revenue per subscriber under the transition
arrangement with Charter, we excluded approximately 152,000 Charter wholesale broadband subscribers from our total paying subscriber
count. Since then, we have included Charter broadband customers who also purchase EarthLink Experience in our broadband subscriber
counts.
Effective March 24, 2005, we transferred approximately 27,000 wireless subscribers to HELIO in connection with completing the
formation of HELIO.
(c)
Churn rate is used to measure the rate at which subscribers discontinue service on a voluntary or involuntary basis. Churn rate is
computed by dividing the average monthly number of subscribers that discontinued service during the year by the average subscribers for
the year.
(d)
Average subscribers or accounts is calculated by averaging the ending monthly subscribers or accounts for the thirteen months preceding
and including the end of the year.
(e)
Narrowband service ARPU represents average monthly service revenue per user (subscriber). Narrowband service ARPU is computed by
dividing average monthly service revenue for the period by the average number of subscribers for the period. Service revenue includes
monthly fees charged to customers for dial-up and wireless Internet access and excludes equipment and related revenues and revenues
associated with acquired PeoplePC Inc (“PeoplePC”) bundled customers.
(f)
ARPU represents the average monthly revenue per user (subscriber). ARPU is computed by dividing average monthly revenue for the
period by the average number of subscribers for the period. Average monthly revenue used to calculate ARPU includes recurring service
revenue as well as nonrecurring revenues associated with equipment and other charges associated with initiating or discontinuing services.
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