Earthlink 2010 Annual Report Download - page 49

Table of Contents
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion of our financial condition and results of operations should be read in conjunction with the consolidated financial
statements and notes thereto included elsewhere in this Annual Report on Form 10-K.
Safe Harbor Statement
The Management's Discussion and Analysis and other portions of this Annual Report on Form 10-K include "forward-
looking" statements
(rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described.
Although we believe that the expectations expressed in these forward-
looking statements are reasonable, we cannot promise that our
expectations will turn out to be correct. Our actual results could be materially different from and worse than our expectations. With respect to
such forward-
looking statements, we seek the protections afforded by the Private Securities Litigation Reform Act of 1995. These risks include,
without limitation (1) that we may not be able to execute our business strategy to transition to a leading IP infrastructure and managed services
provider, which could adversely impact our results of operations and cash flows; (2) that we may be unsuccessful in making and integrating
acquisitions into our business, which could result in operating difficulties, losses and other adverse consequences; (3) that the continuing effects
of adverse economic conditions could harm our business; (4) that if we do not continue to innovate and provide products and services that are
useful to individual subscribers and business customers, we may not remain competitive, and our revenues and operating results could suffer;
(5) that our failure to implement cost reduction initiatives will adversely affect our results of operations; (6) that we will require a significant
amount of cash, which may not be available to us, to service our debt and fund our other liquidity needs; (7) that we face significant competition
in the Internet industry that could reduce our profitability; (8) that our consumer business is dependent on the availability of third-
party network
service providers; (9) that the continued decline of our consumer access subscribers, combined with the change in mix of our consumer access
base from narrowband to broadband, will adversely affect our results of operations; (10) that our commercial and alliance arrangements may not
be renewed or may not generate expected benefits, which could adversely affect our results of operations; (11) that privacy concerns relating to
our business could damage our reputation and deter current and potential users from using our services; (12) that changes in technology in the
Internet access industry could cause a decline in our business; (13) that we face significant competition in the communications industry that
could reduce our profitability; (14) that decisions by the Federal Communications Commission relieving ILECs of certain regulatory
requirements, and possible further deregulation in the future, may restrict our ability to provide services and may increase the costs we incur to
provide these services; (15) that our wholesale services, including our broadband transport services, will be adversely affected by pricing
pressure, network overcapacity, service cancellations and other factors; (16) that our operating performance will suffer if we are not offered
competitive rates for the access services we need to provide our long distance services; (17) that we may experience reductions in switched
access and reciprocal compensation revenue; (18) that our inability to maintain our network infrastructure, portions of which we do not own,
could adversely affect our operating results; (19) that if we are unable to interconnect with AT&T, Verizon and other incumbent carriers on
acceptable terms, our ability to offer competitively priced local telephone services will be adversely affected; (20) that we may not be able to
compete effectively if we are unable to install additional network equipment or convert our network to more advanced technology; (21) that
failure to
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indenture to require the Company to repurchase the EarthLink Notes. As a result, we classified the EarthLink Notes as a
current liability in the Consolidated Balance Sheet as of December 31, 2010.
As of December 31, 2010, also includes the carrying amount of the ITC^DeltaCom Notes assumed in our acquisition of
ITC^DeltaCom in December 2010, which was $351.3 million as of December 31, 2010. The ITC^DeltaCom Notes will
mature on April 1, 2016.