Earthlink 2010 Annual Report Download - page 8

Download and view the complete annual report

Please find page 8 of the 2010 Earthlink annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Table of Contents
Value-Added Services. We also offer other services which are incremental to our Internet access services described above. Our value-
added services portfolio includes products for protection, communication and performance, such as security products, premium email only, home
networking, email storage and Internet call waiting, among others. We offer free and fee-based value-added services to both subscribers and non-
subscribers. We also generate advertising revenues by leveraging the value of our customer base and user traffic; through paid placements for
searches, powered by the Google
TM
search engine; from fees generated through revenue sharing arrangements with online partners whose
products and services can be accessed through our web properties; from commissions received from partners for the sale of partners' services to
our subscribers; and from sales of advertising on our various web properties.
Sales and Distribution
In response to changes in our business and industry, we have significantly reduced our Consumer Services segment sales and marketing
spending over the past three years. Our marketing efforts are currently focused on retaining customers and adding customers through alliances
and partnerships that generate an acceptable rate of return. We offer our products and services primarily through direct customer contact through
our call centers, search engine marketing, affinity marketing partners, resellers and marketing alliances such as our relationship with Time
Warner Cable.
Customer Service and Retention
We believe that quality customer service and technical support increase customer satisfaction, which reduces churn. We also believe that
satisfied customers provide cost benefits, including reduced contact center support costs and reduced bad debt expense. We provide high-
quality
customer service, invest in loyalty and retention efforts and continually monitor customer satisfaction for our services. Our customer support is
available by chat and phone as well as through help sites and Internet guide files on our web sites. We have been recognized historically by
customer service and marketing organizations for ranking high in customer satisfaction for our dial-up and high-speed Internet services.
In addition to our customer support, our tools offer protection against viruses, spyware, spam and pop-ups, as well as dial-
up Web
acceleration. We believe that providing these tools also increases customer satisfaction and reduces churn.
Network Infrastructure
We provide subscribers with Internet access primarily through third-
party network service providers. Our principal provider for narrowband
services is Level 3 Communications, Inc. ("Level 3"). Our agreement with Level 3 expires in December 2011. We also have agreements with
certain regional and local narrowband providers.
We have agreements with Time Warner Cable that allow us to provide broadband services over Time Warner Cable's and Bright House
Networks' cable network in substantially all their markets and with Comcast Corporation ("Comcast") that allow us to provide broadband
services over Comcast's cable network in certain Comcast markets. We have agreements with AT&T Corp. ("AT&T"), Covad Communications
Company ("Covad"), Qwest Communications Corporation ("Qwest") and Verizon Internet Services, Inc. that allow us to provide DSL services.
We rely on Covad's line-powered voice access
4