Earthlink 2010 Annual Report Download - page 59
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Table of Contents
Consumer Operating Metrics
We utilize certain non-
financial and operating measures to assess our financial performance. Terms such as churn and average revenue per
user ("ARPU") are terms commonly used in our industry. The following table sets forth subscriber and operating data for the periods indicated:
54
December 31,
2008
December 31,
2009
December 31,
2010
Consumer Subscriber Detail (a)
Narrowband access subscribers
1,747,000
1,225,000
932,000
Broadband access subscribers
896,000
804,000
704,000
Subscribers at end of year
2,643,000
2,029,000
1,636,000
Year Ended December 31,
2008 2009 2010
Consumer Subscriber Activity
Subscribers at beginning of year
3,683,000
2,643,000
2,029,000
Gross organic subscriber additions
637,000
399,000
265,000
Acquired subscribers
8,000
—
—
Adjustment (b)
(15,000
)
(7,000
)
—
Churn
(1,670,000
)
(1,006,000
)
(658,000
)
Subscribers at end of year
2,643,000
2,029,000
1,636,000
Consumer Metrics
Average subscribers (c)
3,130,000
2,310,000
1,817,000
ARPU (d)
$
20.76
$
20.76
$
21.16
Churn rate (e)
4.4
%
3.6
%
3.0
%
(a)
Subscriber counts do not include nonpaying customers. Customers receiving service under promotional programs
that include periods of free service at inception are not included in subscriber counts until they become paying
customers.
(b) During the year ended December 31, 2008, we removed 15,000 EarthLink-
supported Sprint customers from our
broadband subscriber counts. During the year ended December 31, 2009, we removed approximately 7,000 satellite
subscribers from our broadband subscriber count and total subscriber count as a result of our sale of these
subscriber accounts.
(c)
Average subscribers or accounts is calculated by averaging the ending monthly subscribers or accounts for the
thirteen months preceding and including the end of the year.
(d)
ARPU represents the average monthly revenue per user (subscriber). ARPU is computed by dividing average
monthly revenue for the year by the average number of subscribers for the year. Average monthly revenue used to
calculate ARPU includes recurring service revenue as well as nonrecurring revenues associated with equipment and
other one-time charges associated with initiating or discontinuing services.
(e)
Churn rate is used to measure the rate at which subscribers discontinue service on a voluntary or involuntary basis.
Churn rate is computed by dividing the average monthly number of subscribers that discontinued service during the
year by the average subscribers for the year. Churn rate for the years ended December 31, 2008 and 2009 excludes
the impact of the adjustments noted in (b) above.