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Table of Contents
FORWARD-LOOKING STATEMENTS
Certain statements in this Annual Report on Form 10-K are forward-
looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, and Section 21E of the Securities Exchange Act of 1934. The words
"estimate," "plan," "intend," "expect," "anticipate," "believe" and similar expressions are intended to identify forward-
looking statements. These
forward-
looking statements are found at various places throughout this report. EarthLink, Inc. disclaims any intention or obligation to update or
revise any forward-
looking statements, whether as a result of new information, future events or otherwise. Although EarthLink, Inc. believes that
its expectations are based on reasonable assumptions, it can give no assurance that its targets and goals will be achieved. Important factors that
could cause actual results to differ from estimates or projections contained in the forward-
looking statements are described under "Risk Factors"
in Item 1A of Part I and under "Safe Harbor Statement" in Item 7 of Part II.
PART I
Item 1. Business.
Overview
EarthLink, Inc. ("EarthLink" or the "Company"), together with its consolidated subsidiaries, is a leading network, communications and IT
services provider to business and residential customers in the United States. We operate two reportable segments, Business Services and
Consumer Services. Our Business Services segment provides a broad range of data, voice, managed IT and equipment services to business
customers. Our Consumer Services segment provides nationwide Internet access and related value-
added services to residential customers. We
operate an extensive network including approximately 28,800 route miles of fiber, 90 metro fiber rings and four enterprise-
class data centers and
provide IP access services to customers across more than 90 percent of the United States.
We were incorporated in 1999 as a Delaware corporation and EarthLink, Inc. was formed in February 2000 as a result of the merger of
EarthLink Network, Inc. and MindSpring Enterprises, Inc. Our corporate offices are located at 1375 Peachtree St., Atlanta, Georgia 30309, and
our telephone number at that location is (404) 815-0770. Our website address is www.earthlink.net.
Highlights
Acquisitions.
During late 2010 and early 2011, we entered into two transactions that transformed our business from being primarily an
Internet services provider ("ISP") to residential customers into a network and communications provider for business customers. In December
2010, we completed the acquisition of ITC^DeltaCom, Inc. ("ITC^DeltaCom"), a provider of integrated communications services to customers
in the southeastern U.S. In April 2011, we completed the acquisition of One Communications Corp. ("One Communications"), a privately-
held
integrated telecommunications solutions provider serving customers in the Northeast, Mid-
Atlantic and Upper Midwest. Through these
acquisitions we acquired a substantial network infrastructure, which enabled us to broaden our range of products and services in our Business
Services segment. We now offer a robust suite of business services, including data and voice, and have more scale in the markets we serve.
During 2011, we rebranded our retail Business Services as EarthLink Business
TM
and our wholesale Business Services as EarthLink Carrier.
During 2011, we also entered into other strategic transactions in order to complement our business services and expand our managed
services portfolio. In March 2011, we acquired Saturn Telecommunication Services Inc. and affiliates ("STS Telecom"), a privately-
held
company that operates a sophisticated Voice-over-
Internet Protocol ("VoIP") platform that we have leveraged on a nationwide basis as part of
our Business Services offerings. In May 2011, we acquired Logical Solutions.net, Inc. ("Logical Solutions"), a privately-
held company that
provides a suite of cloud computing and hosted
1