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Article

Title: Earthlink Evolves

Author: Staff Article Type: Product Analysis
Source: Red Herring, v3 n6 p42(3) Publication Date: Feb 20, 2006
  ISSN: 1080-076X
  Illustrations: Graphs
URL of Publication: http://www.redherring.com

Earthlink, in its next generation, will finish building a controversial citywide Wi-Fi network in Philadelphia by years end and also plans the launch of an early adopter wireless service with SK Telecom of South Korea, which is South Korea's largest cellular company. EarthLink is already selling Voice over IP (VoIP) services and has trialed broadband over power lines. Earthlink's cost reductions were successful in getting the company back on course during the dot-com crash, and Earthlink is now generating cash. With expectations of a report of $1.02 per share for 2005 earnings, Earthlink has recorded net income of $111 million on $1.4 billion in revenue. However, some analysts think Earthlink could be run over by Internet Service Provider (ISP) leaders such as Time Warner AOL and Microsoft MSN. Some say investing in multiple new technologies could put the company over budget on ventures that might not succeed, including municipal Wi-Fi, which is an unproven business. While Time Warner AOL can afford to gamble and lose, Earthlink's margin for error is small. Among topics covered are Earthlink's excellent sales prospects, Earthlink's competitors, a decision by the U.S. Supreme Court that cable companies can block third parties like Earthlink from selling services over their networks (and a similar ruling by the Federal Communications Commission (FCC) affecting phone companies), and Earthlink's need for a plan to deal with the market as it moves into broadband.

Special Features: Graphs

Companies:
EarthLink Inc

Products:
VoIP (Voice over IP)

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