Earthlink 2010 Annual Report Download - page 7

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Table of Contents
The primary challenges we face in executing our business strategy for our Business Services segment are continuing to develop new
profitable managed services offerings that will be attractive to multi-
location customers, successfully integrating our acquisitions to achieve
expected synergies and cost savings, responding to competitive and economic pressures in the communications industry and adapting to
regulatory changes and initiatives. The primary challenges we face in executing our business strategy for our Consumer Service segment are
managing the rate of decline in our consumer revenues, implementing outsourcing and other cost-
saving initiatives, and operating our network
cost-effectively, including network services purchased from third-
party telecommunications service providers. 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
Our Consumer Services segment provides nationwide Internet access and related value-
added services to individual customers. We derived
approximately 74% of our revenues during the year ended December 31, 2010 from our Consumer Services segment. We expect this percentage
to decrease as our Business Services segment comprises a larger portion of our overall business and as the market for consumer Internet access
continues to mature.
Services
Narrowband Access. We offer premium dial-
up, or narrowband, access that provides customers with access to the Internet and a wide
variety of content, features, services, applications, tools and technical and customer support. Such features and services include email, a
customizable start page, antivirus protection and acceleration tools. We also offer value-priced dial-up access through our PeoplePC
TM
Online
offering that provides customers with access to the Internet at comparatively lower prices. Narrowband access 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 does not interfere with a customer's voice
service, so there is no need for a second phone line. We provide high-
speed access services primarily via cable, and to a lesser extent via DSL,
and offer different speeds of service. Availability for these services depends on the cable or telephone service provider. Our high-
speed access
service includes many of the same features and benefits included with our premium dial-
up access service, including email, a customizable start
page, antivirus and firewall protection, and technical and customer support. Broadband access revenues primarily consist of fees charged for
high-speed access services.
Consumer VoIP. We provide two voice-over-Internet-Protocol ("VoIP") services. We offer a bundle of services that includes 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 Subscriber Line Access Multiplexer, or DSLAM, technology. We currently offer this service in 12 markets in the
U.S. We also provide Internet-
based phone service that enables our customers to make and receive phone calls with a telephone in any location
where our broadband Internet access is available. We transmit these calls using VoIP technology, which converts voice signals into digital data
packets for transmission over the Internet. We offer subscription-
based service under various plans that include features such as voicemail, call
waiting, caller ID, call forwarding and E911 service. Revenues primarily consist of fees charged to customers for VoIP service plans.
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