Juno 2014 Annual Report Download - page 6

Table of Contents
pay accounts at December 31, 2014, of which 301,000 were Internet access pay accounts and 189,000 were pay accounts subscribed to our other
Communications services, including email, Internet security and web hosting services. The majority of our Communications revenues are derived from dial-
up Internet access, DSL and other Communications services. In addition, our Communications services generate advertising revenues from search placements,
display advertisements and online market research associated with our Internet access and email services.
 Our Internet access services consist of dial-up, mobile broadband and, to a much lesser extent, DSL services. Our dial-up
Internet access services are provided on both a free and pay basis, with the free services subject to hourly and other limitations. Basic pay dial-up Internet
access services include Internet access and an email account. In addition, we offer accelerated dial-up Internet access services which can significantly reduce
the time required for certain web pages to load during Internet browsing when compared to our basic dial-up Internet access services. Our accelerated dial-up
Internet access services are also bundled with additional benefits, including antivirus software and enhanced email storage, although we also offer each of
these features and certain other value-added features as stand-alone pay services. Our dial-up Internet access services are available in more than 12,000 cities
across the U.S. and Canada. We also generate revenues from the resale of telecommunications to third parties. Our Internet access services have typically
experienced a higher rate of new member registrations during the quarter ending March 31 when compared to other quarters, though there can be no
assurance that these seasonal trends will continue in the future.
In 2012, we began offering our mobile broadband service as part of a wholesale agreement with Clearwire. In January 2014, we expanded the coverage
area to include the Sprint 3G network. In November 2014, we expanded coverage to include the Sprint 4G LTE network. We offer consumers the option to
access the service by purchasing either a NetZero USB modem to connect a single device such as a PC or a Mac® computer, or a NetZero personal hotspot
that can connect up to eight Wi-Fi enabled devices simultaneously. NetZero USB modem and NetZero hotspot customers are able to connect to our mobile
broadband service using a variety of devices, including a PC, Mac® computer, iPad® mobile digital device, and other tablets, netbooks and smartphones.
Our mobile broadband service is generally available for use in the home, at the office or on the go by customers across the U.S.
 In November 2014, we began a test phase offering voice services as part of our wholesale agreement with Sprint. We offer consumers the
option to access the services by purchasing a mobile phone from NetZero or by bringing their own mobile device to use on our service. We offer a variety of
plans, which include talk, text and data.
—The U.S. market for consumer Internet access services has evolved significantly, primarily due to increased availability and
consumer adoption of high-speed broadband or mobile broadband connections. As a result, the percentage of Americans who access the Internet via dial-up
has declined each year since 2002, according to Pew Internet & American Life Project. We anticipate that such percentage will continue to decline.
Broadband Internet access services are now available to most of the U.S. population at competitive prices, although market pricing varies based on the
geographic region and speed of the broadband service, among other factors. Broadband continues to have a much lower penetration rate in rural areas when
compared to urban and suburban areas and, according to an estimate released by the Federal Communications Commission in November 2014,
approximately 15 million Americans lack access to fixed broadband service in rural areas. Many broadband providers, including cable companies such as
Comcast and local exchange carriers such as AT&T, market broadband Internet access offerings that are "bundled" with telephone, entertainment or other
services, which generally results in lower prices than stand-alone services. At the same time, the maturity of the dial-up Internet access market has led the
largest dial-up service providers in the U.S., including AOL, EarthLink, NetZero, and Juno, to
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