Earthlink 2008 Annual Report Download - page 6

Table of Contents
• Opportunities for Growth.
In response to changes in our business, we have significantly reduced our sales and marketing
spending. However, we continue to seek to add customers that generate an acceptable rate of return and increase the number of
subscribers we add through alliances, partnerships and acquisitions from other ISPs. We also continue to evaluate potential
strategic transactions that could complement our business.
The primary challenges we face in executing our business strategy are managing the rate of decline in our revenues, responding to
competition, reducing churn, implementing cost reduction initiatives, purchasing cost-
effective wholesale broadband access and adding
customers that generate an acceptable rate of return. The factors we believe are instrumental to the achievement of our business strategy may be
subject to competitive, regulatory and other events and circumstances that are beyond our control. Further, we can provide no assurance that we
will be successful in achieving any or all of the strategies identified above, that the achievement or existence of such strategies will favorably
impact profitability, or that other factors will not arise that would adversely affect future profitability.
Consumer Services Segment
Service Offerings
Narrowband Access
Premium Dial-up Internet Access. Our premium dial-up, or narrowband, access is a subscription-
based service that provides customers
with access to the Internet and a wide variety of content, features, services, applications, tools and 24/7 customer support. Such features include
antivirus and firewall protection, acceleration tools and privacy and safety tools. Revenues primarily consist of monthly fees charged to
customers for dial-up Internet access.
Value Dial-up Internet Access. We provide value-priced dial-up access services through our PeoplePC™ Online offering. Our value dial-
up access is a subscription-
based service that provides customers access to the Internet with limited functionality and support services at
comparatively lower prices. We also provide for an additional charge to value-priced dial-
up access customers accelerator technology that speeds
up customers' page load times by compressing and simplifying web pages. Revenues primarily consist of monthly fees charged to customers for
dial-up Internet access.
Broadband Access
High-
speed, or broadband, access offers a high speed, always on Internet connection that uses a modem to supply an Internet connection
across an existing home phone line or cable connection. The Internet service doesn't interfere with a customer's voice service, so there is no need
for a second phone line. We provide high-
speed access services via DSL and cable and offer different speeds of service (ranging from 1.5Mbps
to 8.0Mbps). Availability for these services depends on the telephone or cable service provider. Our high-
speed access service includes the same
features and benefits included with our premium dial-
up access service, including antivirus and firewall protection, privacy and safety tools and
24/7 customer support. Broadband access revenues consist of monthly fees charged for high-
speed access services; activation fees; early
termination fees; equipment fees associated with the sale of modems and other access devices to our subscribers; and shipping and handling fees.
VoIP
EarthLink DSL and Home Phone Service is a bundle offer that includes EarthLink high-
speed Internet access at speeds up to 8.0Mbps and
home phone service. It combines the last mile of traditional telephone copper wiring with the advanced features of voice-over-
Internet Protocol
("VoIP") by taking advantage of Digital Subscriber Line Access Multiplexer, or DSLAM, technology. We offer subscription-
based service under
various plans that include features such as voicemail, call waiting, caller ID, call forwarding and E911 service. We currently offer this service in
12 markets in the U.S. covering
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