Earthlink 2010 Annual Report Download - page 133

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Table of Contents
EARTHLINK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The primary component of the Company's revenues is access and service revenues, which consist of narrowband access services (including
traditional, fully-featured narrowband access and value-priced narrowband access); broadband access services (including high-
speed access via
DSL and cable, VoIP and managed IP-
based networks); voice services (including local exchange services, long distance and conference calling
services); the sale of transmission capacity to other telecommunications carriers; and web hosting services. The Company also earns revenues
from value-added services, which include ancillary services sold as add-
on features to the Company's access services, search and advertising
revenues.
The Company's Consumer Services segment earns revenue from narrowband access services (including traditional, fully-
featured
narrowband access and value-priced narrowband access) and broadband access services (including high-
speed access via DSL and cable and
VoIP). Revenues from access services generally consist of recurring monthly charges for such services; usage fees; installation fees; termination
fees; and fees for equipment. The Company's Consumer Services segment also earns revenues from value-
added services, which include
revenues from ancillary services sold as add-
on features to EarthLink's Internet access services, such as security products, premium email only,
home networking, email storage and Internet call waiting; search revenues; and advertising revenues.
The Company's Business Services segment earns revenue by providing high-
speed or broadband data communications services, which
include managed IP-
based networks and Internet access; voice services, which include local exchange services, long distance and conference
calling services; mobile voice and data services; and the sale of transmission capacity (which is an access service) to other telecommunications
carriers. Revenues from these services generally consist of recurring monthly charges for such services; usage fees; installation fees; and
termination fees. The Company's Business Services segment also earns revenue by providing web hosting services. Web hosting revenues
consist of fees charged for leasing server space and providing web services to enable customers to build and maintain an effective online
presence.
Information on revenues by groups of similar services and by segment for the years ended December 31, 2008, 2009 and 2010 is as follows:
The Company manages its working capital on a consolidated basis and does not allocate long-
lived assets to segments. In addition, segment
assets are not reported to, or used by, the chief operating decision maker and therefore, total segment assets have not been disclosed.
126
Year Ended December 31,
2008 2009 2010
(in thousands)
Consumer Services
Access and service
$
682,135
$
503,769
$
403,174
Value
-
added services
97,741
71,643
58,274
Total revenues
779,876
575,412
461,448
Business Services
Access and service
172,944
146,087
158,677
Value
-
added services
2,757
2,230
2,087
Total revenues
175,701
148,317
160,764
Consolidated
Access and service
855,079
649,856
561,851
Value
-
added services
100,498
73,873
60,361
Total revenues
$
955,577
$
723,729
$
622,212