Earthlink 2012 Annual Report Download - page 9

Table of Contents
and automated operator and directory assistance services; and dedicated Internet access services through our IP network and our direct
connectivity to the IP networks of ISPs.
Other Services
We lease server space and provide web hosting services that enable customers to build and maintain an effective online presence.
Features include domain names, storage, mailboxes, software tools to build websites, e-commerce applications and 24/7 customer support.
Sales and Distribution
We market our retail Business Services through direct, inside and independent sales channels. Our direct sales force is composed of
sales personnel and technical consultants. We also maintain an inside sales force and lead generation tools like Search Engine Marketing to drive
demand. We supplement our direct and inside sales force with our independent channel partners, who leverage their business relationships with
the customer and act as sales agents for us. The channel partners include value-
added resellers, local area network consultants and other
telecommunications and IT consultants to businesses. Our authorized dealers and agents receive commissions based on services sold and
installed, usage volume and customer retention.
In order to accelerate our transition into an IT services company, we are reducing our direct sales presence in smaller markets and
focusing on larger geographic markets where there are more customers with a propensity to buy IT services. In addition, we are increasing our
efforts in Search Engine Marketing to drive leads for our inside sales force, increasing brand awareness for our IT services and adding additional
technical talent in the field to support our IT services sales efforts.
We market our wholesale Business Services through a dedicated direct sales force. We generally enter into master service agreements
with our wholesale services customers that have terms ranging from one to five years.
Customer Service and Retention
We believe that our broad communications and IT services portfolio and blend of access technologies for connectivity are key
differentiators that can help us build long-
term customer relationships. We believe that offering a bundled package of communications and IT
services to our business customers increases retention rates and limits customer churn. Additionally, with our sales structure, we have more
distinct sales and support roles that we believe will improve customer retention. With our nationwide service, we offer myLink, a secure
customer portal, which provides customers with a centralized tool for self-
service applications, reporting and management features 24/7. We are
also seeking to improve customer response times through internal training programs and integrated billing, support and sales systems. We
reinforce our strategy through compensation programs that reward our sales and account management staff based on customer retention.
Network Infrastructure
We provide secure, efficient and reliable communications services primarily through an expansive fiber optic network, an advanced
nationwide MPLS network and switch and colocation facilities. We have four enterprise-
class data centers on our fiber network which are fully
integrated with our nationwide IP network with additional data centers employing next generation cloud architecture coming online in 2013 to
support our IT services. Throughout the network, advanced monitoring and management tools are in place to ensure performance and quality,
bringing value and an enhanced experience to our customers.
Fiber Optic Network -
As of December 31, 2012, our advanced fiber optic network consisted of 28,804 route miles (including 3,945
marketed and managed route miles) covering 25 states and 90 metro fiber rings and provides for high-
quality wavelength, Ethernet, SONET,
Internet access and virtual private networking services. The network infrastructure is built on our Dense Wave Division Multiplexing, or
DWDM, platform and core routers. We are currently extending our core fiber IP network by adding 606 route miles of fiber to our optical
transport capabilities. The additional capacity will allow us to offer new native 100 Gig transport services across parts of our fiber footprint,
offering customers the advantage of unique network routes for enhanced redundancy and network diversity.
Nationwide MPLS Network - Our nationwide network is based on MPLS, a highly-scalable and high-
performance packet transport
system, with a broad array of IP infrastructure positioned in strategic locations across the U.S. We have interconnection agreements with major
local exchange carriers to lease unbundled network elements, as well as commercial services agreements with national communications
companies, CLECs, and cable and wireless service providers to provide last mile access to our customers and connectivity onto our network.
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