Earthlink 2010 Annual Report Download - page 10

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Table of Contents
from raising, our prices. We may encounter further market pressures to: migrate existing customers to lower-
priced service offerings; restructure
service offerings to offer more value; reduce prices; and respond to particular short-term, market-
specific situations, such as special introductory
pricing or new product or service offerings.
Business Services Segment
Our Business Services segment provides integrated communications services and related value-
added services to businesses, enterprise
organizations and communications carriers. Prior to our acquisition of ITC^DeltaCom, our Business Services segment primarily consisted of our
New Edge Networks subsidiary, which provides managed IP
-
based network solutions to businesses nationwide. We also provide Internet access
and web hosting services to small to mid-
sized businesses. With the acquisition of ITC^DeltaCom, we have expanded our service offerings to
include voice services and are able to offer our existing service offerings over a broader geographical area. In addition, we now own a fiber
network that we can use to offer new services. We derived approximately 26% of our revenues during the year ended December 31, 2010 from
our Business Services segment. This percentage will increase as our integrated communications services business grows through the acquisition
of ITC^DeltaCom, our pending acquisition of One Communications and other potential future acquisitions.
Services
Our business services include data services, including managed IP-
based network services and broadband Internet access services; voice
services, including local exchange, long-
distance and conference calling; mobile data and voice services; and web hosting. We provide our
services to end user business customers and to wholesale customers. Our end users range from large enterprises with many locations, to small
and medium-sized multi-
site businesses to business customers with one site. Our wholesale customers consist primarily of telecommunications
carriers and network resellers.
Bundled Services Approach
When financially advantageous for us to do so, we seek to bundle the integrated communications services we provide in our 14-
state fiber
optic network together with communications devices, related installation and maintenance service, and managed network services. Our targeted
customers often will have multiple vendors for voice and data communications services, as well as additional vendors for communication
devices, each of which may bill the customer separately. We offer a comprehensive package of local telephone, long distance, Internet access
and other integrated communications services. We are able to leverage our experience in providing and maintaining customer premises
equipment as well as relationships with leading manufacturers to provide our customers with access to a range of remotely managed office
communication devices. We believe that our bundle of services provides an attractive means of delivering communications solutions.
Integrated Communications Services
Secure IP-based networks. We provide IP-
based networks for business customers. Customers can choose a blend of access technologies
including DSL, T-1 and DS3 lines, Ethernet and wireless broadband. We offer MPLS-
based services, which enables businesses to combine a
variety of applications of their choice on a single network to optimize bandwidth and provide reliable network performance. Customers can also
use class of service ("CoS") tagging of MPLS network traffic, to prioritize which of their applications should move across the network ahead of
others. Customer applications run on our mix of internal and public Internet links. Revenues consist of fees charged for managed IP-
based
networks, installation fees, termination fees, fees for equipment and cost recovery fees billed to customers.
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