Earthlink 2013 Annual Report Download - page 9

Download and view the complete annual report

Please find page 9 of the 2013 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 217

  • 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
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217

Table of Contents
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 we use 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 have reduced our direct sales presence in smaller markets and
focus 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. 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 eight enterprise-
class data centers on our fiber network which are fully
integrated with our nationwide IP network with five of those data centers employing next generation cloud architecture 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, 2013, our advanced fiber optic network consisted of more than 28,000 route miles covering
30 states plus the District of Columbia 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 approximately 900 route miles of fiber to our optical transport capabilities. The
additional capacity will increase our ability to offer 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.
Colocation Facilities - With co-
located communications equipment within the central offices of ILECs and alternative access providers
in various markets in the United States, we offer remote facilities-
based local and long distance services in markets by using our switches in
other locations as hosts. Using our fiber optic network and leased facilities to connect our remote equipment to our switches, colocation provides
cost-efficient access to last mile facilities to connect to customers.
Switch Facilities - Our array of switch facilities send voice and data traffic domestically and internationally through balanced and cost-
effective routing. Services are also offered on Metaswitch's MetaSphere MTAS (Multimedia Telephony Application Server) providing an
innovative portfolio of hosted and managed business-
class communications solutions such as nationwide hosted PBX and SIP trunking services.
Metaswitch's voice portal capabilities are also integrated into customer portals,
4