EarthLink

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EarthLink Inc.
Type Public
Traded as NASDAQ: ELNK
Industry IT Services, Cloud Computing, ISP & Communications
Founded 1994
Headquarters Atlanta, Georgia, USA
Key people Rolla Huff, Joseph Wetzel, Bradley Ferguson
Products IT services, Business High Speed Internet and voice services, Cloud Hosting, consumer ISP,
Revenue increaseUS$1.216 billion (2007)
Employees 3,000+ (2012)[1]
Website EarthLink Business, EarthLink Cloud, EarthLink.net

EarthLink is an IT services, network and communications provider headquartered in Atlanta, Georgia, USA. The company serves more than 150,000 businesses and 1 million U.S. consumers.[1]

Contents

[edit] Business

Part of the EarthLink World Headquarters in Atlanta.

As of 2012, EarthLink operates two distinct divisions: EarthLink Business Services and EarthLink Consumer Services.

EarthLink Business Services include connectivity (MPLS, T-1, DS3, DSL, Ethernet, Wireless), IT services (Cloud Hosting, virtualization, Data and Voice CPE, IT Security, Managed Services, ASP Web Hosting), and wholesale services (fiber capacity and network services). The company owns and operates a U.S. network including 28,000 route miles of fiber, 90 metro fiber rings, and 4 data centers. The network covers over 90 percent of the country. EarthLink Business Services provides IT and IP services for more than 150,000 customers.[2]

EarthLink Consumer Services include Broadband (DSL, Freestanding DSL, Cable Internet, Satellite Internet), Voice over Internet protocol (VOIP) phone services, dial-up Internet, Web Hosting and ecommerce, and related services such as software. EarthLink provides Internet services to over 1 million homes.[2]

[edit] History

[edit] Early Years

EarthLink was founded in in March 1994 by Sky Dayton at age 23. He reportedly was inspired to start the dial-up Internet service provider (ISP) in Los Angeles after spending an entire week trying to configure his own computer for Internet access. Dayton’s experience convinced him that there was a market for a simple, user-friendly ISP.[3]

By 1995, EarthLink offered nationwide dial-up service (98 cities) and was the first ISP to offer unlimited Internet access for a flat rate.[4]

In 1996, EarthLink began to offer Internet services for businesses, including ISDN and frame relay Internet access[5] and web hosting.[6] In October, EarthLink was named “Internet Company of the Year” by the Southern California Software Industry Council.[7]

[edit] EarthLink Goes Public, Hits 1 Million Members

EarthLink went public on NASDAQ in January 1997. Later that year, the company began to provide 56K dial-up access, doubling speed of its dial-up service. EarthLink also teamed up with Charter Communications to offer high-speed cable Internet access.[8]

In 1998, EarthLink entered partnerships with Sprint, Apple, CompUSA, and other companies that helped it reach 1 million members by the end of the year.[4]

In 1999 EarthLink launched its TotalCommerce ecommerce solution for small business Web hosting and also became the first ISP to offer nationwide high-speed Internet access via DSL.[4]

[edit] MindSpring Merger, Growing Product Portfolio

On February 4, 2000, the company, then based in Pasadena, California,[5] merged with Atlanta-founded MindSpring, making it the second-largest ISP in the U.S., after AOL.[9]

Later that year, the company launched EarthLink Biz DSL service and won PC World’s World Class Award for Best ISP.[10] EarthLink also acquired OneMain.com, a large, rural ISP.

In 2001, EarthLink partnered with DirecPC to offer a 2-way satellite Internet service.[11] The company also introduced a fixed-IP DSL service for the SOHO business market.[12]

On June 10, 2002, EarthLink acquired PeoplePC, a value-priced dial-up ISP.

The company also won several awards in 2002. EarthLink was named Top ISP by CNet for the 3rd consecutive year and received a 5-star rating from Smart Business.[13] And in August, 2002, J.D. Power and Associates ranked EarthLink Dial-Up Highest in Customer Satisfaction. EarthLink High-Speed tied for the Highest in Customer Satisfaction ranking.[14]

EarthLink launched a VoIP phone service for broadband users called Unlimited Voice in April 2003.[15] In August, J.D. Power and Associates ranked EarthLink High Speed Highest in Customer Satisfaction for the second consecutive year.[16] The company also released several free tools for its members to block spam, viruses, and spyware.[17]

In September 2004, J.D. Power and Associates ranked both EarthLink Dial-Up and EarthLink High Speed Highest in Customer Satisfaction.[18] EarthLink Dial-Up also received the PC Magazine Readers’ Choice Award for the second year in a row.[13]

[edit] New Ventures: Municipal Wi-Fi, Helio, VoIP, New Edge Networks

At the start of 2005, EarthLink and SK Telecom, the largest mobile phone company in South Korea,[19] announced a new joint venture called SK-EarthLink, which would become the Helio mobile phone company.[20] Helio, a new MVNO, or mobile virtual network operator, targeted young, tech-savvy consumers with advanced wireless devices and services common in Korea but not the U.S. Helio launched a total of 7 phones (Kickflip, Hero, Drift, Heat, Ocean, Fin and Mysto) and had 170,000 subscribers before it was sold to Virgin Mobile USA in June, 2008.[21]

In July, 2005, EarthLink announced that it was closing its last in-house call centers to reduce costs, deciding to rely entirely on outsourced technical support and customer service.[22]

In October, 2005, Philadelphia, PA,[23] and Anaheim, CA, selected EarthLink to build their municipal Wi-Fi networks.[24] EarthLink's Municipal Networks division would launch public wi-fi networks in Anaheim, Philadelphia, New Orleans, and Milpitas, CA,[25] and win several more municipal contracts before EarthLink decided to exit the muni wi-fi business by the end of 2007.[26]

EarthLink launched two new voice services between late 2005 and early 2006: a stand-alone VoIP service called EarthLink trueVoice[27] and a high-speed Internet and voice bundle called EarthLink DSL & Home Phone Service.[28]

In April, 2006, EarthLink acquired New Edge Networks, a provider of network and communication services for businesses.[29] In June, the EarthLink’s Municipal Networks division launched the company’s first citywide Wi-Fi network in Anaheim, CA.[30]

[edit] Company Restructures

In October 2006, EarthLink reported its first quarterly loss in more than 2½ years. Revenue from dial-up customers dropped 16.8 percent as the company lost 320,001 of those customers from the previous year. The company predicted another loss in the fourth quarter of 2006 of $15–$25 million due to investment in Helio.[31]

In response to increased budgetary concerns, new EarthLink CEO Rolla Huff began a major restructuring in August, 2007. The company planned to lay off approximately 900 employees, consolidate offices, and withdraw from several product lines.[32] The restructuring helped EarthLink return to profitability in the fourth quarter of 2007, posting free cash flow of $59 million and $71 million of EBITDA for the quarter.[12]

In September, J.D. Power and Associates again ranked both EarthLink Dial-Up and EarthLink High Speed Highest in Customer Satisfaction (High Speed ranking is in 2 of 4 regions).[33]

[edit] New EarthLink Business Division, Business Acquisitions

By 2010, EarthLink CEO Rolla Huff was restructuring the company to focus on IT, network and communication services for businesses, launching its EarthLink Business division and making several large business acquisitions to bolster the new division.

In October, EarthLink announced its acquisition of ITC Deltacom, a telecom service provider with 32,000 small and mid-sized business customers, along with enterprise, government agency and wholesale customers.[34]

In December, EarthLink acquired One Communications, one of the largest privately held integrated telecom solutions providers in the U.S.[35]

In March 2011, EarthLink also acquired STS Telecom, a privately-held business providing voice, data and internet services to small to medium-sized business customers in Florida and Georgia.[36] STS Telecom was integrated into the new EarthLink Business division, along with the recently acquired One Communications and Deltacom, New Edge Networks, and EarthLink’s legacy Business Solutions.

In May 2011, the company created a new EarthLink Carrier division to serve wholesale customers with fiber-based transport, voice and data service, and switched services.[37]

Also in May, EarthLink acquired LogicalSolutions.net, an enterprise data center solution and cloud services provider.[38]

In August, EarthLink acquired Business Vitals, a national provider of managed IT security, and professional services, in an effort to complement its cloud hosting services.[39] EarthLink also acquired xDefenders, a managed IT security company.[40]

EarthLink closed 2011 with another business-related acquisition, completing the purchase of the IT Solution Center and cloud-based application business from Synergy Global Solutions.[41] The company also announced plans to expand and enhance its network infrastructure. The network expansion includes major transport network builds, new OC-192 10 Gigabit Ethernet fiber rings, additional high-speed access points for private Voice over IP network traffic, nationwide IP MPLS and EVDO wireless network expansions, and bringing EarthLink’s enterprise-class data centers on-net with high-capacity fiber rings.[42]

[edit] New Edge Networks

EarthLink completed its acquisition of New Edge Networks April 13, 2006.[43] New Edge Networks is a CLEC that provides network solutions to businesses through direct and wholesale channels. New Edge differentiates itself from its competition with its private backbone and MPLS network product. New Edge also manages network connections for more than 350 multi-site retailers and has received several awards, most recently the Front & Sullivan “Customer Value Enhancement” Award and Gartner’s “Magic Quadrant” for Remote Access and Mobility Services.[44]

The acquisition of New Edge strengthens EarthLink’s move into the business-to-business markets.[45] New Edge's core network assets have provided EarthLink Business Solutions with a larger coverage area.[46] EarthLink Business Solutions’ product offerings include: dial-up, ADSL, SDSL, fractional and full T1s and T3s.[47] EarthLink Business Solutions call center is located in New Edge’s Vancouver, Washington, campus.[48]

[edit] CEO Changes

On November 21, 2006, EarthLink reported in a press release that its CEO, Garry Betty, had been diagnosed with a serious form of cancer which would have required him to take an undetermined leave of absence. The company's Board of Directors named Mike Lunsford, Vice-President of Voice and Access, as interim CEO. Betty died on January 2, 2007.[49][50] Scott Richard Wilson quickly replaced Garry Betty but on May 2007,announced that he would be taking a Vice president job at New York Life and on June 25, 2007, EarthLink named Rolla Huff its President and CEO. On January 29, 2008, EarthLink announced that Rolla Huff would replace Robert Kavner as Chairman of the Board.[51]

[edit] Reed Slatkin

In 2002, when co-founder Reed Slatkin's Ponzi scheme made headlines,[52] EarthLink released a statement:[53]

"The legal proceedings concerning ex-Board member Reed Slatkin do not involve or impact EarthLink or EarthLink funds. The proceedings involve Mr. Slatkin and his personal clients."

[edit] Notes

  1. ^ a b "EarthLink About Us page". EarthLink. http://www.earthlink.net/about/corp/. Retrieved 3 January 2012. 
  2. ^ a b "About Us". EarthLink. http://www.earthlink.net/about/corp/. Retrieved 7 January 2012. 
  3. ^ Borland, John. "The ultimate ISP survivor faces a crossroads in broadband". Cnet. http://news.cnet.com/2009-1033-888081.html. 
  4. ^ "EarthLink Inc". http://www.encyclopedia.com/doc/1G2-3405300149.html. Retrieved 11 January 2012. 
  5. ^ "REPEAT/EARTHLINK CUTS UNIQUE DOMAIN WEB SITE HOSTING SET UP FEE BY MORE THAN $800". http://www.thefreelibrary.com/REPEAT%2FEARTHLINK+CUTS+UNIQUE+DOMAIN+WEB+SITE+HOSTING+SET+UP+FEE+BY...-a018717444. Retrieved 11 January 2012. 
  6. ^ "EARTHLINK NETWORK SELECTED AS INTERNET COMPANY OF THE YEAR". http://www.thefreelibrary.com/EARTHLINK+NETWORK+SELECTED+AS+INTERNET+COMPANY+OF+THE+YEAR.-a018774185. Retrieved 11 January 2012. 
  7. ^ "Earthlink Inc". http://www.encyclopedia.com/doc/1G2-3405300149.html. Retrieved 11 January 2012. 
  8. ^ Kaplan, Karen. "EarthLink, MindSpring Agree to Merge : Technology: The combination would create 2nd-largest Internet service provider.". LATimes.com. http://articles.latimes.com/1999/sep/24/business/fi-13635. Retrieved 12 January 2012. 
  9. ^ "IDG's PC World Announces 2000 World Class Award Winners". PR Newswire. http://www.prnewswire.com/news-releases/idgs-pc-world-announces-2000-world-class-award-winners-73456672.html. Retrieved 11 January 2012. 
  10. ^ "EarthLink launches satellite Internet service". CNN Tech. http://articles.cnn.com/2001-05-02/tech/earthlink.satellite.idg_1_satellite-dishes-satellite-internet-service-directv?_s=PM:TECH. Retrieved 11 January 2012. 
  11. ^ "EarthLink offers DSL users fixed IP address option". Macworld. http://www.macworld.com/article/18050/2001/06/earthlink.html. Retrieved 11 January 2012. 
  12. ^ a b "EarthLink's History". http://www.earthlink.net/about/history/. Retrieved 11 January 2012. 
  13. ^ "J.D. Power and Associates Reports: EarthLink Ranks Highest in Customer Satisfaction Among Dial-Up Internet Service Providers. Source: http://www.allbusiness.com/company-activities-management/operations-customer/5922001-1.html#ixzz1jC8Lx9NQ". All Business. http://www.allbusiness.com/company-activities-management/operations-customer/5922001-1.html. Retrieved 11 January 2012. 
  14. ^ "EarthLink Introduces EarthLink Unlimited Voice Broadband Telephone Service; EarthLink Becomes First Major Nationwide ISP to Deploy Full-Scale Voice-over- IP Solution to End-Users". The Free Library. http://www.thefreelibrary.com/EarthLink+Introduces+EarthLink+Unlimited+Voice+Broadband+Telephone...-a0131738141. Retrieved 11 January 2012. 
  15. ^ "EarthLink High Speed Internet Service Ranked Highest in Customer Satisfaction By J.D. Power and Associates". http://phx.corporate-ir.net/phoenix.zhtml?c=77594&p=irol-newsArticle&ID=602236&highlight=. Retrieved 11 January 2012. 
  16. ^ "EarthLink Launches Virus Blocker". PR Newswire. http://www.prnewswire.com/news-releases/earthlink-launches-virus-blocker-72997952.html. Retrieved 11 January 2012. 
  17. ^ "J.D. Power: Customers rank EarthLink as top ISP". CED. http://www.cedmagazine.com/news/2004/09/j.d.-power%3A-customers-rank-earthlink-as-top-isp. Retrieved 11 January 2012. 
  18. ^ "South Korea: SK Telecom Goes LTE". DailyWireless.org. http://www.dailywireless.org/2011/01/12/south-korea-lte-for-sk-telecom/. Retrieved 12 January 2012. 
  19. ^ "EarthLink announces joint venture with SK Telecom". Wireless Industry News. http://www.wirelessindustrynews.org/news-jan-2005/0060-012605-win-news.html. Retrieved 11 January 2012. 
  20. ^ Reardon, Marguerite. "Virgin Mobile USA buys Helio for $39 million". Cnet. http://news.cnet.com/8301-10784_3-9978991-7.html. Retrieved 12 January 2012. 
  21. ^ Husted, Bill (2005-07-26). "EarthLink to cut 180 customer service workers Work to be outsourced overseas". Atlanta Journal Constitution. 
  22. ^ "Philadelphia Picks EarthLink for Wi-Fi". Wall Street Journal. http://online.wsj.com/article_email/SB112838889067259176-lMyQjAxMDE1MjA4NDMwODQ4Wj.html. Retrieved 11 January 2012. 
  23. ^ "EarthLink wins second muni Wi-Fi contract". Connected Planet. http://connectedplanetonline.com/wireless/technology/earthlink_muni_wifi_102605/. Retrieved 11 January 2012. 
  24. ^ Reardon, Marguerite. "EarthLink rolls out more citywide Wi-Fi". Cnet. http://news.cnet.com/EarthLink-rolls-out-more-citywide-Wi-Fi/2100-7351_3-6145619.html?tag=lia;rcol. Retrieved 12 January 2012. 
  25. ^ "Philadelphia Wi-Fi project now in jeopardy, EarthLink may back out". Beta News. http://betanews.com/2007/11/19/philadelphia-wi-fi-project-now-in-jeopardy-earthlink-may-back-out/. Retrieved 12 January 2012. 
  26. ^ "Earthlink launches trueVoice a national broadband VoIP service". http://blog.tmcnet.com/blog/tom-keating/voip/earthlink-launches-truevoice-a-national-broadband-voip-service.asp. Retrieved 12 January 2012. 
  27. ^ "Earthlink Launches DSL, VOIP". Light Reading. http://www.lightreading.com/document.asp?doc_id=88330. Retrieved 12 January 2012. 
  28. ^ "EarthLink Acquires Virtual Private Network Company, New Edge Networks". The Hosting News. http://www.thehostingnews.com/news-earthlink-acquires-virtual-private-network-company-new-edge-networks-2203.html. Retrieved 11 January 2012. 
  29. ^ "EarthLink Launches The City Of Anaheim Municipal Wireless Network". PR Newswire. http://www.prnewswire.com/news-releases/earthlink-launches-the-city-of-anaheim-municipal-wireless-network-57015222.html. Retrieved 11 January 2012. 
  30. ^ Leith, Scott (2006-10-20). "Quarterly Loss Drives EarthLink's Stock Down". Atlanta Journal Constitution. 
  31. ^ Reardon, Marguerite. "EarthLink to lay off 900". Cnet. http://news.cnet.com/8301-10784_3-9767410-7.html. Retrieved 11 January 2012. 
  32. ^ "EarthLink Ranks Highest in Customer Satisfaction among Dial-Up Internet Service Providers". http://businesscenter.jdpower.com/news/pressrelease.aspx?ID=2007210. Retrieved 11 January 2012. 
  33. ^ "EarthLink to Acquire Deltacom for $516M". Fox Business. http://www.foxbusiness.com/markets/2010/10/01/earthlink-acquire-deltacom-m/. Retrieved 12 January 2012. 
  34. ^ "EarthLink Buys Telecom Services Company One Communications For $370 Million". Techrunch. http://techcrunch.com/2010/12/20/earthlink-buys-telecom-services-company-one-communications-for-370-million/. Retrieved 12 January 2012. 
  35. ^ "EarthLink Completes Acquisition of STS Telecom Adds Hosted VoIP Expertise to EarthLink Business Product Portfolio". http://www.earthlink.net/about/press/pressrelease.faces?id=838. Retrieved 12 January 2012. 
  36. ^ "EarthLink launches EarthLink Carrier". Atlanta Business Chronicle. http://www.bizjournals.com/atlanta/news/2011/05/23/earthlink-launches-earthlink-carrier.html. Retrieved 12 January 2012. 
  37. ^ "EarthLink Acquires LogicalSolutions.net". http://www.earthlinkcloud.com/2011/05/earthlink-acquires-logicalsolutions-net/. Retrieved 12 January 2012. 
  38. ^ "http://www.businessweek.com/ap/financialnews/D9OS24E81.htm". Businessweek.com. http://www.businessweek.com/ap/financialnews/D9OS24E81.htm. Retrieved 12 January 2012. 
  39. ^ "EarthLink acquires xDefenders". TelecomPaper. http://www.telecompaper.com/news/earthlink-acquires-xdefenders. Retrieved 12 January 2012. 
  40. ^ "EarthLink Completes Acquisition of IT Solution Center from Synergy Global Solutions". Yahoo Finance. http://finance.yahoo.com/news/earthlink-completes-acquisition-solution-center-134200308.html. Retrieved 12 January 2012. 
  41. ^ "EarthLink Announces Network Expansion and Enhancements for Scalability and Growth". ThomasNet News. http://news.thomasnet.com/companystory/EarthLink-Announces-Network-Expansion-and-Enhancements-for-Scalability-and-Growth-604098. Retrieved 12 January 2012. 
  42. ^ New Edge Networks (2006-04-13). "Company Milestones". New Edge Networks. http://www.newedgenetworks.com/about_us/milestones.xea. Retrieved 2007-12-28. 
  43. ^ New Edge Networks (2006-04-13). "New Edge Earns Frost & Sullivan's 2007 Customer Value Award". New Edge Networks. http://www.newedgenetworks.com/about_us/news/?id=1449. Retrieved 2007-12-28. 
  44. ^ Goldman, Alex (2005-12-14). "EarthLink Means Business". ISP-Planet. http://www.isp-planet.com/investor/2005/earthlink_new_edge.html. Retrieved 2007-12-28. 
  45. ^ Goldman, Alex (2006-05-01). "Announcing EarthLink Business Solutions". ISP-Planet. http://www.isp-planet.com/news/2006/earthlink_small_business.html. Retrieved 2007-12-28. 
  46. ^ "Business Internet Access". EarthLink Business Solutions. http://www.earthlink.biz/highspeed/. Retrieved 2007-12-28. 
  47. ^ "FAQ - Business Internet Access". EarthLink Business Solutions. http://www.earthlink.biz/support/faq-highspeed.jsp#elnk. Retrieved 2007-12-28. 
  48. ^ Keefe, Bob. "EarthLink: Illness Drives Leader Shuffle." Atlanta Journal-Constitution. November 22, 2006. Business Section 1C.
  49. ^ Roberts, Paul F (2007-01-03). "EarthLink CEO Betty dead at 49". InfoWorld. http://www.infoworld.com/article/07/01/03/HNearthlinkceo_1.html. Retrieved 2007-01-03. 
  50. ^ Gaffikin, Brigid (2008-01-28). "EarthLink names CEO Rolla Huff board chair". Tradingmarkets.com. http://www.tradingmarkets.com/.site/news/Stock%20News/1035376/?hcode=relatednews. Retrieved 2008-03-07. 
  51. ^ Tkacik, Maureen (March 27, 2002). "EarthLink Co-Founder Slatkin Admits to Fraud in Ponzi Scheme". Wall Street Journal. http://online.wsj.com/article/SB101718484270953360.html. Retrieved 2009-04-17. 

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