Earthlink 2007 Annual Report Download - page 37
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(a)
Year Ended December 31,
2005
2006
2007
Subscriber Activity
Subscribers at beginning of year
5,388,000
5,315,000
5,313,000
Gross organic subscriber additions
2,766,000
2,717,000
1,994,000
Acquired subscribers
147,000
162,000
65,000
Adjustment (b)
(27,000
)
—
(
753,000
)
Churn
(2,959,000
)
(2,881,000
)
(2,743,000
)
Subscribers at end of year
5,315,000
5,313,000
3,876,000
Churn rate (c)
4.6%
4.6%
5.1%
Consumer Services Data
Average subscribers (d)
5,204,000
5,124,000
4,321,000
ARPU (e)
$
19.53
$
18.52
$
19.77
Churn rate (c)
4.6%
4.6%
5.2%
Business Services Data
Average subscribers (d)
154,000
212,000
207,000
ARPU (e)
$
38.20
$
63.61
$
76.62
Churn rate (c)
2.6%
2.8%
2.6%
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)
Effective March 24, 2005, we transferred approximately 27,000 wireless subscribers to HELIO in connection with completing the
formation of HELIO.
In April 2007, our wholesale contract with Embarq expired. As a result, we removed 753,000 wholesale broadband EarthLink-supported
Embarq subscribers from our broadband subscriber count and total subscriber count.
(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. Churn rate for the year ended December 31, 2007 excludes the impact of the Embarq adjustment.
(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)
ARPU represents the average monthly revenue per user (subscriber). ARPU is computed by dividing average monthly revenue for the
year by the average number of subscribers for the year. Average monthly revenue used to calculate ARPU includes recurring service
revenue as well as nonrecurring revenues associated with equipment and other one-time charges associated with initiating or
discontinuing services.
32