Dialup Internet Access Isn’t Disappearing Yet
EarthLink is going back to the basics of concentrating on providing Internet access – including dialup accounts.
Rolla Huff, the Internet Service provider’s new chief executive officer, said Thursday that the firm would focus on dialup and digital subscriber line ISP business. He also said the company would consider acquisitions.
“We believe and most industry analysts agree that there will continue to be a meaningful percentage of households in the U.S. that will have dialup circuits in their homes for years to come,” Huff said in a conference call to discuss EarthLink’s earnings. “Dial access is not an organic growth business, and we no longer try to run it like it is. It’s a mature business that if run correctly will generate meaningful cash flow for many years to come.”
He noted that some analysts expect dialup penetration in 2014 to range between 6-10 percent of U.S. households even though dialup is much slower than DSL, cable or other means of access.
“We believe that, not unlike the paging industry, there will be a meaningful segment of U.S. households that will have a dial-up Internet service connection for many years to come,” Huff added.
EarthLink shares climbed more than 50 cents, or 7 percent, Thursday to $7.18. The company reported that Huff’s reorganization efforts in recent months had reduced employee headcount by more than 50 percent. Huff also is pulling EarthLink out of the municipal wireless fidelity (WiFi) network business. The company also is providing no additional funding for wireless provider Helio, which it had launched as a joint venture with SK Telecom.
In the conference call, Huff said he learned soon after taking the CEO post last June that the WiFi business unit faced significant challenges.
“It quickly became evident that we would have a really difficult time changing the perception by some of the cities that we owed them a free network rather than the city stepping up to make the business model viable for both them and for our shareholders,” he said, according to The Financial Times.
For the most recent quarter, EarthLink said the WiFi business unit lost $32.1 million compared to a $7 million loss a year ago. EarthLink is looking to sell the WiFi business.
For the fourth quarter, EarthLink reported revenues of $282 million and earnings of 19 cents a share, which topped analysts expectations by 4 cents.
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Monday, February 11
Dialup Internet Access Isn’t Disappearing Yet
by
Mike
on Mon 11 Feb 2008 08:31 AM PST
Tuesday, December 4
EasyStreet explores going green
by
Mike
on Tue 04 Dec 2007 07:13 AM PST
EasyStreet explores going green
Along with that growth comes a big power bill -- about $300k a year, Bader told me. That's only going to get bigger as EasyStreet expands its data center next year. "The data center is, in fact, becoming the dominant cost of IT," he said. EasyStreet isn't the only one with these troubles, of course. Google, which has installed a power-gobbling data center in The Dalles, announced last week that it will invest heavily in renewable energy. Intel and AMD are racing to create more efficient microprocessors, to cut power consumption. At EasyStreet, Bader says, exploration of green power began with employees who the company to cut power consumption and waste. EasyStreet bought TriMet passes for its workers, did away with bottled water and signed up for PGE's renewable power program, but only for half the company's total load -- going whole hog could have boosted EasyStreet's power bill by 20 percent, Bader told me. "The buck stops with me," he said. "It's got to make financial sense." That's what EasyStreet hopes to do with its new program. Last week, Bader and others from EasyStreet met with his old employer, Intel, to talk about ways of improving data center design. As Bader walked me through EasyStreet's existing data center, attached to its Beaverton headquarters, the magnitude of the issue was clear. Servers stacked tightly together throw off immense heat. EasyStreet won't make decisions about its new data center 'til late next month, Bader said, but ideas being explored include a design that doesn't rely on air conditioning -- partly by using Oregon's (usually) cool ambient air, and partly by managing air circulation inside the data center. Building a more energy-efficient data center will very likely cost EasyStreet more than if it used a standard design. Bader said he hopes an "anchor tenant," interested in lower power bills and the marketing promise of green power, will commit to use the facility and make it cost-effective. By expanding its data center, EasyStreet is already gambling on its future success. Bader said he has to manage that risk to ensure the added cost of going green doesn't get out of hand. "What I have to do is make sure this is not a bet-the-business proposition," he said. Monday, December 3
NextPhase Wireless Announce 2008 WiMAX Rollout Plan
by
Mike
on Mon 03 Dec 2007 07:41 AM PST
NextPhase Wireless Announce 2008 WiMAX Rollout Plan
NextPhase Wireless Inc (OTCBB: NPHS), a next-generation wireless connectivity solutions provider specializing in integrated Internet, voice and data communication, today announced that they will commence testing and deployment of certified WiMAX products in 1Q08. "Deploying WiMAX services in the U.S. has been a challenge to date, primarily because of limited spectrum availability, and non-existence of certified equipment designed for the bands that are available domestically. While the current WiMAX standards theoretically cover spectrum from 2GHz to 66 GHz, most manufacturers have focused their efforts on producing product for the international standard of 3.5 GHz, which is reserved for military use in the U.S.," said Robert Ford, President and CEO. "In June 2007, the FCC acknowledged this issue by opening up the 3.65 - 3.7 GHz band for Wireless Broadband Services in an attempt to 'encourage multiple entrants and stimulate the expansion of broadband service to rural and under served areas,' with applications for nationwide licenses being accepted from November 15, 2007. Since then, manufacturers of existing 3.5GHz WiMAX products have been working to have their products certified by the FCC, with Redline Communications being the first to announce a 3.65 GHz product to be approved for operation in the United States." "Now that certified WiMAX products are available, we are ready to take the next step in building a device-agnostic, WiMAX wireless broadband connectivity/content delivery platform serving all 48 contiguous U.S. states. Leveraging our existing WiMAX-ready infrastructure, we have applied to the FCC for a nationwide license, and will begin testing certified WiMAX equipment in 1Q08. Once testing is complete, we will be deploying WiMAX equipment in Southern California, and other key markets nationwide. As certified Mobile WiMAX products become available, we plan to test and deploy those, also," added Ford. Thursday, November 8
AOL's ad sales growth disappoints again
by
Mike
on Thu 08 Nov 2007 07:28 AM PST
AOL's ad sales growth disappoints again In the third quarter, which ended Sept. 30, AOL grew its online ad revenue just 13 percent compared with the same quarter last year, parent company Time Warner said Wednesday. By comparison, Google's revenue, which is almost totally made up of online ad sales, grew 57 percent in its third quarter, also ended Sept. 30. It is the second straight quarter of disappointing online ad growth for AOL, which is in a transition from a business model based on Internet access subscription fees to one focused on online advertising. AOL's online ad revenue growth in the second quarter was 16 percent, well below the 26 percent growth of the U.S. online ad spending that quarter. Last month, AOL began the process of laying off about 2,000 employees, or approximately 20 percent of its staff, in order to shift budget dollars from the ISP (Internet service provider) business to the advertising team. AOL's weak advertising growth will also likely increase the pressure on CEO Randy Falco, who was hired a year ago and under whose watch the ad revenue has wilted. In a memo announcing the layoffs last month, Falco wrote: "So where is this taking AOL? Put simply, my vision for AOL is to build the largest and most sophisticated global advertising network while we grow the size and engagement of our worldwide audience." "We're now in a position to win as an advertising-supported business. We have a bright future as a company if we can execute on this vision," Falco wrote. The key word in Falco's memo: "if". Falco's appointment last November perplexed some industry watchers, because to bring him on board Time Warner fired Jonathan Miller, who engineered the AOL business transformation and had earned praise for its early results. In last year's third quarter, the last full one under Miller's lead, AOL's ad revenue grew 46 percent. For the 2006 fiscal year, AOL had ad revenue growth of 41 percent, faster than the 35 percent growth of the overall U.S. online ad market. Miller, AOL's CEO since August 2002, also had significantly more experience in the Internet market than Falco, a TV industry veteran who, prior to joining AOL, had been president and chief operating officer of the NBC Universal Television Group. Despite the struggles, AOL continues pushing ahead with its transition, announcing Wednesday that it has entered into an agreement to acquire Quigo, whose contextual advertising technology matches ads to Web page contents. Although financial terms weren't disclosed, a source told IDG News Service that the price is about US$340 million. Quigo, founded in 2000 and based in New York, is the fourth Internet advertising company AOL will buy this year. When the deal is finalized, Quigo, which has about 100 staffers, will join Platform A, AOL's new umbrella group for advertising programs and services. AOL's overall third-quarter revenue fell 38 percent to $1.2 billion, as AOL continues phasing out its ISP business, whose revenue fell 56 percent. As of Sept. 30, AOL had 10.1 million ISP subscribers, down by 5.1 million from last year's third quarter. Monday, September 24
Dial-Up Customers More Satisfied than Broadband Surfers
by
Mike
on Mon 24 Sep 2007 07:54 AM PDT
Remember dial-up Internet access? Nearly 35 percent of Internet-connected U.S. households still rely on dial-up Internet access providers. This segment may be stuck in the Internet slow lane, but according to a study by J.D. Power and Associates dial-up Internet users are happier with their service compared to their broadband brethren. The just released study J.D. Powers found that 51 percent dial-up subscribers are loyal to their ISP, compared to 42 percent of high-speed customers. Satisfaction, in fact, has been improving for dial-up customers increasing 13 points (using J.D. Powers rating methodology) from 2006 to 2007. Meanwhile satisfaction with broadband ISP has declined by 13 points since 2006. "We are surprised at the trend, more than we are at the percentage changes," says Steve Kirkeby, executive director for telecom and technology for J.D. Powers. Kirkeby points out that satisfaction directly relates to price. Broadband customers who pay more expect more and vice versa. Top gripes for broadband customers are outages and network performance, connection problems, and quality of tech support received when it is sought.
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