Juno 2013 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2013 Juno 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 339

  • 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
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228
  • 229
  • 230
  • 231
  • 232
  • 233
  • 234
  • 235
  • 236
  • 237
  • 238
  • 239
  • 240
  • 241
  • 242
  • 243
  • 244
  • 245
  • 246
  • 247
  • 248
  • 249
  • 250
  • 251
  • 252
  • 253
  • 254
  • 255
  • 256
  • 257
  • 258
  • 259
  • 260
  • 261
  • 262
  • 263
  • 264
  • 265
  • 266
  • 267
  • 268
  • 269
  • 270
  • 271
  • 272
  • 273
  • 274
  • 275
  • 276
  • 277
  • 278
  • 279
  • 280
  • 281
  • 282
  • 283
  • 284
  • 285
  • 286
  • 287
  • 288
  • 289
  • 290
  • 291
  • 292
  • 293
  • 294
  • 295
  • 296
  • 297
  • 298
  • 299
  • 300
  • 301
  • 302
  • 303
  • 304
  • 305
  • 306
  • 307
  • 308
  • 309
  • 310
  • 311
  • 312
  • 313
  • 314
  • 315
  • 316
  • 317
  • 318
  • 319
  • 320
  • 321
  • 322
  • 323
  • 324
  • 325
  • 326
  • 327
  • 328
  • 329
  • 330
  • 331
  • 332
  • 333
  • 334
  • 335
  • 336
  • 337
  • 338
  • 339

Table of Contents
exchange carriers, wireless and satellite service providers, and cable service providers. These competitors include established providers such as AT&T,
Verizon, Sprint and T-Mobile. Our principal dial-up Internet access competitors include established online service and content providers, such as AOL
and MSN, and independent national Internet service providers, such as EarthLink and its PeoplePC subsidiary. We believe the primary competitive
factors in the Internet access industry are speed, price, coverage area, scope of services, quality of service, and features. Our dial-up Internet access
services do not compete favorably with broadband services with respect to certain of these factors, including, but not limited to, speed and, in certain
cases, price. When compared to other dial-up Internet access services, we believe our dial-up Internet access services compete favorably. Our mobile
broadband service and our DSL service compete favorably with other broadband services with respect to certain factors, although some of our
competitors have an advantage over us with respect to certain other factors, such as price. For additional information, see "Risk Factors", which appears
in Item 1A of this Annual Report on Form 10-K.

Each of our services, including our social networking services, our loyalty marketing service, and our Internet access services operates on a
separate and distinct technology platform. Each of our services is generally provided through a combination of internally-developed and third-party
software, industry standard hardware and outsourced network services. We maintain the web properties that power these services. We also have
developed software to enhance the functionality of certain components of our services, including connectivity, web services, billing, email, customer
support, data analysis, customer loyalty applications, and targeted advertising. We maintain data centers in multiple locations in the U.S. and Europe. In
many cases, we have redundant systems to provide high levels of service availability and connectivity. We host the majority of our data center services
in outsourced, third-party co-location facilities and we outsource all of our bandwidth and managed modem services.
We license from third parties a number of our software applications and components, including applications for our billing, customer support,
advertising, and database systems, our client and server applications, and portions of our dial-up Internet access accelerator services. These licenses
generally have terms ranging from a year to perpetual.

We believe reliable customer service and technical support are important to retaining our customers. Our businesses generally offer a variety of
online and offline tools designed to provide solutions and answers to frequently asked questions. These tools are also designed to assist our members
and customers in verifying and updating their account information. In addition, we offer traditional email support and certain of our services provide live
telephone support as well.
Our customer relationship management and support infrastructure includes employees at our facilities in Woodland Hills, California; Hyderabad,
India; Fort Lee, New Jersey; Seattle, Washington; and Schaumburg, Illinois. We also outsource to third parties substantially all of our telephone and
email customer support for our Communications services, and email customer support for MyPoints services. We monitor the effectiveness of our
customer support functions and measure performance metrics such as average hold time and first call resolution and abandonment rates.
Communications with our customers are logged and categorized to enable us to recognize and act on trends.

We are subject to a number of international, federal, state, and local laws and regulations, including, without limitation, those relating to taxation,
bulk email or "spam," advertising, user privacy and data protection, consumer protection, antitrust, export, and unclaimed property. In addition,
10