Earthlink 2009 Annual Report Download - page 6

Table of Contents
handling the number of calls to contact centers, managing cost-
effective outsourcing opportunities, managing our network costs,
implementing workforce reduction initiatives and streamlining our internal processes and operations.
•
Opportunities for Growth.
In response to changes in our business, we have significantly reduced our sales and marketing
spending during the past two years. 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 continue to
evaluate and consider potential strategic transactions that may complement our business. We are also seeking ways to create more
scale within our New Edge business.
The primary challenges we face in executing our business strategy are managing the rate of decline in our revenues, aligning costs with
trends in our revenue, responding to competition, reducing churn, purchasing cost-effective network services from third-
party
telecommunications service providers 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 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
TM
Online offering. Our value
dial-up access is a subscription-
based service that provides customers access to the Internet at comparatively lower prices. We also provide to
our 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 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. 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 primarily consist of fees charged for high-speed access services.
VoIP
We provide two VoIP services. EarthLink DSL and Home Phone Service is a bundle offer that includes EarthLink high-
speed Internet
access and home phone service. It combines the last mile of traditional telephone copper wiring with the advanced features of VoIP by taking
advantage of Digital
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