Will Earthlink Survive?You mean firing all your U.S. techs didn't help? ( old news - 03:57PM Wednesday Aug 01 2007) tags: competition · businessEarthlink, like AOL, has been hemorrhaging dial-up subscribers. Unlike AOL, Earthlink decided to tough it out in the broadband industry. The company has been doing their best to survive by trying a little bit of everything. They're investing in broadband over powerline (which will surely take off any day now), reselling Covad ADSL2+ and line-powered voice and deploying municipal Wi-Fi. They've also been engaged in an outsourcing push for several years -- the company slowly closing the doors of U.S. call centers and replacing domestic tech support with offshore labor. Remaining U.S. tech support employees not cut during a big layoff in 2004 have been getting the axe, as documented by employees in our forums. The results? Earthlink's latest earnings report indicates the company saw a $16.3 million shortfall in the second quarter, thanks largely to their money gobbling MVNO, Helio. Revenue also dropped 6% to $312 million, thanks to continuing dial-up customer losses. New CEO Rolla Huff is still assessing the company's financial situation, and is expected to announce further changes later this quarter. He made it pretty clear this week that the company's Muni-Fi efforts are going to be scaled back, telling investors that "the Wi-Fi business, as currently constituted, will not provide an acceptable return."
Related:- FiOS Growth Slows
- Retired Telco Exec Sent Sloppy AT&T Lobbying Letter
- Fairpoint Owes About $619 Million
- JD Power's Latest ISP Ratings
- CRTC Blocks Canada's WIND Wireless Network
- Windstream Acquires NuVox Communications
- AT&T Sues Verizon Over 3G Ads
- Verizon Keeps Swinging At AT&T
|
 
inteller
Sociopaths always win.
join:2003-12-08
Tulsa, OK | earthlink save yourself....drop helio. MVNOs are just snake oil. Drop that crap. | |
|  | 
Karl Bode
News Guy
join:2000-03-02
Host:
Road Runner
PC gaming GAMES
PC gaming Tech
1 edit | Re: earthlink save yourself....drop helio. You would think.
Was listening to this audio interview with the Amp'd CEO Peter Adderton who insists thusly:
quote:
What Helio is trying to do, similar to what Amp’d was trying, is exactly on the right path. The difference between Helio and Amp’d it that Helio has two shareholders that are willing to ride this through and make sure that it gets out the other end.
Is Earthlink really in a position to take the risk though? | |
| | | 
kapil
The Kapil
join:2000-04-26
Chicago, IL
| Re: earthlink save yourself....drop helio. I think this clusterfuck may actually survive. First, if AOL can survive, anything is possible.
But really, here's what Earthlink has going for it:
A CEO who has been through the wringer a few times. Not many people are better at salvaging companies than Rolla.
The "other" shareholder in Helio...SK Telecom has cash and government backing in its homeland....and a real hakerin' to expand into the US.
There was news story recently that SKT is interested in buying out Sprint. Sprint is the network Helio runs on. Sprint and Earthlink also have a commone lineage. I believe there is a very good chance that SK Telecom will buy out both Sprint and Earthlink.
Earthlink will be the customer-facing ISP brand and focus on Broadband - DSL, BPL, Muni, Fiber...any shape it comes in, Sprint will be the business, leased line, carrier wholesale type division and Helio will be the wireless brand. Boost will continue as the hip, mostly prepaid type brand targeted towards the young crowd. Mindspring will become a full blown VoIP offering. Nextel will become a sub-brand or a trademark name for the walkie-talkie service offered as an addition to wireless from Helio instead of continuing as its own separate brand like it has even post-merger....and Nextel will live even after iden dies and is replaced with qchat or some such. | |
| | | | pepperxn
join:2001-02-21
| Re: earthlink save yourself....drop helio. I read this as well about SKT interested in buying Sprint. Sprint's marketcap is way larger than SKT, so they might buy part of Sprint as part of a group bid for the whole company.
I don't see how the FCC would approve of this anyways.
I read a while back that eventually Sprint will drop the Nextel brand name. I dunno about this.
I think Earthlink's best move is to buy Covad, and possibly smaller ISPs. | |
| | | | |
kapil
The Kapil
join:2000-04-26
Chicago, IL
| Re: earthlink save yourself....drop helio. If FCC approved MCI and Verizon and AT&T and SBC...even with a democratic congress, I don' think a SK Telecom buyout or a "merger" would be a problem. At least not a big enough problem to kill the deal entirely.
Sprint doesn't have as many government contracts as ATT or MCI so there wouldn't be any "national security" type concerns. And if the argument is that foreign entities shouldn't own such a vital piece of national infrastructure, I'm agraid that boat sailed quite a while ago with most of our government and industry leaders on it!
If Covad decides it can't surivie and grow as an independent, it's going home to AT&T.
There's also the possibility that Rolla may sell Earthlink to McLeod, just like he did with his last company Mpower...McLeod, while much smaller when compared to the ILECs, has found new life! ...and could be in the market for a "consumer" brand to complement is mostly business-class offering. | |
| | | | | | pepperxn
join:2001-02-21
| Re: earthlink save yourself....drop helio. There's a difference between SBC buying AT&T Corp. and a foreign company buying Sprint. Shareholders might not approve of it, but then again, shareholders are more concerned about money, than they are about the company itself.
Maybe Sprint will get broken up.
I read somewhere that banks were saying that Qwest was interested in Sprint's infrastructure.
Didn't Mpower get bought by some other company? | |
| | | | | | |
kapil
The Kapil
join:2000-04-26
Chicago, IL
| Re: earthlink save yourself....drop helio. I don't think Qwest has the cash or a strategic reason to buy Sprint. Breaking up really doesn't make sense either, IMO...Sprint is a strange animal...they've had a long history of taking chances on new technology and bringing it to market...they just never worked out the business end of things.
Mpower sold the Nevada and California business to TelePacific and Chicago to McLeod. Too bad, really...I had a special place in my heart for that company. Too many good people with the best of intentions were undone by greed and their own management's telco mentality. | |
| | | | | | djweis
join:2006-04-02
West Des Moines, IA | I don't think McLeod has the funds to buy a couple cans of soda, much less Earthlink. They would be a good match, McLeod has been moving their "centers of excellence" overseas for the last few years also. | |
| 
ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA
3 edits | Well duh... $22/mo for dialup, $30-$40/mo for 1.5Mb DSL...plus horrid off shore tech support?
And they're shocked they're losing subscribers to competitors?
Why not just charge $50 million per month for dial up? Then they'll only need 1 subscriber.
In other news, Wi-Fi would do just fine so long as they get away from the cities with their hands out looking for free Wi-Fi. COVAD (formerly Nextweb) is ripping me for $160/mo for my ultra crappy 3Mb WISP service and I would pay double if it only worked like it supposed to.
There are plenty of areas even here in FiOS filled SoCal not servicable by DSL or cable where ELN could fill the gap and make a mint, especially from small business where cable and telcos don't deploy advanced services.
--
Macintosh Users Group Serving the Inland Empire | |
| | |
ColorBASIC
8-bit Fun
Premium
join:2006-12-29
Corona, CA
1 edit | Re: If they die, it will be thanks to brain-dead lemmings You can't make money with a free tier. You can't lose a dollar and make it up in volume. None of those tiers will fly with WiFi without DL caps or throttling.
--
Macintosh Users Group Serving the Inland Empire | |
| | | truocchio
join:2004-07-05
Miami Beach, FL | Re: If they die, it will be thanks to brain-dead lemmings thats assuming it even works well enough to begin with | |
| | supertech315
join:2006-03-01
Perris, CA | Won'f work dude , 80 percent will get free tier | |
| | jarthur31
join:2006-04-14
Carlsbad, NM | You make too much sense. That's why you'll never be a CEO in this country any time soon. Or a politician. | |
| nasadude
join:2001-10-05
Rockville, MD
 ·Comcast
| just think... if the 1996 telecom act had been enforced, instead of getting ready to go bankrupt, Earthlink could have been planning to build their own fiber infrastructure, like is happening with CLECs in Japan.
The incumbents were absolutely correct (from a shareholder and business plan point of view) in preventing the CLECs from succeeding, as at least a few CLECs probably would have been successful enough to have the capitalization for starting to build their own networks - competing on infrastructure, just like the FCC has been claiming they should do.
The government has absolutely abdicated it's responsibility to consumers and the nation by letting the incumbents control regulatory policy.
I have been constantly amazed Earthlink lasted as long as they have. Earthlink is proof positive there will be no viable "third pipe" competitor as long as the current policies remain in place. | |
| |
kapil
The Kapil
join:2000-04-26
Chicago, IL
| Re: just think... As much as our current regulatory environment bothers me with regard to telecommunications, if we're going to wake up all of a sudden and start fixing things, I'd start with things that matter a little bit more than a fast pipe to the interweb.
Not disagreeing with you, in fact, I'm in complete agreement with your point of view, however, the current hole has been a long time in the making and its going to take even longer to dig out of it - if that's possible at all in the first place since it may already be too late to salvage this country. | |
| | | 
batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
 ·Verizon Online DSL
| Re: just think... said by kapil  :............ it may already be too late to salvage this country. The United States of America is much more then Earthlink, it is, believe it or not, bigger then massive tubes of porn. | |
| | | |
kapil
The Kapil
join:2000-04-26
Chicago, IL
| Re: just think... It has very little to do with Earthlink. It's about a, by now, well established pattern of making decisions that are clearly not in the best interest of the nation long term, and of dubious merit even as a short term fix.
Our raw materials, finished products, "smart" people...all come from overseas. If the second world war were to happen today, we'd be screwed because we can't make anything we'd need to fight the war at home anymore.
Our last great source of leverage is capital...and even that's increasingly borrowed from foreigners...and sooner or later they are going to get tired of the ever decreasing value of their investment in the dollar, regardless of how much crap we buy from them.
If you remember, during the dot-com bust, a lot of big names like Cisco, Intel etc. were hurting...because in their greed to expand their revenue, they had sold equipment to these dot coms who wouldn't know a business plan if it came with a set of 36 DDs, and then financed their own equipment using their own money.
Their were accepting their own money as payment for their own equipment! Of course we all know how that ended.
Our relationship with China and others with whom we have a lopsided trading relationship is much the same...they loan us money so we can go back and buy their shit! It works just fine upto a point....when each dollar they loan us is only worth enough to buy 60 cents worth of their crap, they are going to put a stop to it real quick. | |
| | | | |
batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL
| Re: just think... said by kapil :It has very little to do with Earthlink. It's about a, by now, well established pattern of making decisions that are clearly not in the best interest of the nation long term, and of dubious merit even as a short term fix. FIOS is a short term fix? | |
| | | | | |
kapil
The Kapil
join:2000-04-26
Chicago, IL
| Re: just think... Offering up fios as proof that our national infrastructure is not in critical shape but is actually being actively upgraded and renewed is like saying HMOs are the problem to our health care crisis....only those with blinders on or very little knowledge of the subject matter would make the claim.
It's not just about Internet either. The power grid is in disarray. Water supply is threatened. Global warming. Trade deficit, budget deficit...and on and on the list goes. | |
| | | | | | | truocchio
join:2004-07-05
Miami Beach, FL | Re: just think... OH SH*T!! Whe're all gonna die...ahhh
now where is that damn tinfoil hat when I REALLY need it | |
| | | | | | | |
kapil
The Kapil
join:2000-04-26
Chicago, IL
| Re: just think... mock me if you must...but as someone who has lived and traveled outside of these 50 states, speaks many languages, works in an industry where new trends are usually first to appear...and for what it's worth, someone who still spends free time reading, talking to live human beings out in the real world, and engaging myself with the world around me...I see a distinct pattern of what can only be described as hubris. We've gotten a little too used to resting on our laurels and telling ourselves that the rest of the world is perpetually, forever, beneath us.
That is really not true...and at an ever increasing rate. Foreigners own our currency, make all our stuff and write the code for the machines that make our stuff, balances our accounts, prints our payroll checks, gets us our porn on the intertubes. We're single-handedly responsible for creating the "globalism" monster in quest of ever expanding markets for our KFCs and Escalades...but little did we know that it works in reverse too...and the other guys are hungrier, nimbler, smarter...and we've kept them down too long. | |
| | | | | | | | | 
tim_k
Buttons, Bows, Beamer, Shadow, Kasey
Premium
join:2002-02-02
Stewartstown, PA
 ·Millenicom
 ·WildBlue
1 edit | Re: just think... said by kapil :...I see a distinct pattern of what can only be described as hubris. We've gotten a little too used to resting on our laurels and telling ourselves that the rest of the world is perpetually, forever, beneath us. Sure reminds one of Rome, doesn't it?
--
RIP my baby Buttons 1/15/94-2/9/07 | |
| | | | | | | | | |
batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL
| Re: just think... said by tim_k :said by kapil :...I see a distinct pattern of what can only be described as hubris. We've gotten a little too used to resting on our laurels and telling ourselves that the rest of the world is perpetually, forever, beneath us. Sure reminds one of Rome, doesn't it? Rome didn't have the capacity to destroy the world 10 times over. | |
| | | | | | | | | | | | | | | 
pinot noir6
Premium
join:2007-04-23
Columbus, OH
| Re: just think... said by GOLFnSUN :Earthlink has tried to base it's whole business on riding on someone else's infrastructure. Well said. I agree this was their problem all along. | |
| | | clickie
join:2005-05-22
Monroe, MI
| While I agree with the premise of your argument, you're forgetting that the FCC said "hey, come on aboard, these people *have* to open their networks so they can enter other markets". And then, a few years later, the rug gets pulled out from under Earthlink as the FCC rules that all the investment is for nothing, they reverse their original position.
If there was any shred of fairness for the dial-up ISPs who pretty much created the consumer internet market as well as consumers, the dial-up ISPs would have had licenses granted for wireless spectrum when the FCC killed access to incumbent copper. If that would have happened, I bet that any place with more than 500 residents would have had some sort of broadband since 2000. | |
| | | | | |
kapil
The Kapil
join:2000-04-26
Chicago, IL | I call Shenanigan. Or the Godwin equivalent on the 1996 law. | |
| | 
KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·AT&T Yahoo
·AT&T DSL Service
·Cox HSI
·AT&T Southwest
| Many CLECS were building infrastructure, they just did it via debt and issuing stock. When the Dot com crash came, and the stock plunged, they folded... and all the equipment and infrastructure they had was sold super cheap liquidation to the large incumbents. The timing of the crash still pisses me off. I think if it had "held out" say 2-3 more years, many of those companies would have completed their building-out phase and would of been delivering service... the debt would of still been hard to swallow, but at least they would of had some revenue coming in and a lot better chance at surviving.... and we, the customers, would have more options and services available then we do now.
--
"Regulatory capitalism is when companies invest in lawyers, lobbyists, and politicians, instead of plant, people, and customer service." - former FCC Chairman William Kennard (A real FCC Chairman, unlike the current Corporate Spokesperson in the job!) | |
| | | fiberguy
My views are my own.
Premium
join:2005-05-20
| Re: just think... If that were true, over builders like RCN would be growing strong. It still takes a lot of money behind those networks to survive. Marketing dollars play one of the largest parts of keeping a business alive in a competitive market.
--
"Complaining is the least path of resistance for the self-serving, the lazy, and I’m told it’s a woman’s prerogative..." | |
| | | |
KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK | Re: just think... I'd say it's true, although over-simplified. You're right there's other factors to consider, but I think it would have been nice to see how it worked out. | |
| 
brooklynman4
join:2004-09-07
Brooklyn, NY | buyout?? I smell a buyout pretty soon for both companies. | |
| nutcr0cker
join:2003-04-02
Chandler, AZ
| what difference would it make If Earthlink goes down the drain I do not believe that it will impact the jobs in US. Seems like there has been a mad dash in tech companies lately to outsource as many jobs as possible. In the case of E-link I would say good riddance. I can even recommend Lisa Hook as their CEO. | |
| | public
join:2002-01-19
Santa Clara, CA
·DSL EXTREME
| Re: what difference would it make said by nutcr0cker :If Earthlink goes down the drain I do not believe that it will impact the jobs in US. In the case of E-link I would say good riddance. I can even recommend Lisa Hook as their CEO. Maybe they could get brownie, chertie, or even the gonzolito...
If they outsource huffie, they could save enough to pay for a bunch of real support techs. | |
| 
TScheisskopf
World News Trust
join:2005-02-13
Belvidere, NJ
·Sprint Broadband D..
| A long time ago... Back when dirt was in beta testing, I was in Atlanta, out with some geek friends for some tall, frosty adult refreshments. We ran into this guy named "Charlie". He was a geek too, running Atlanta's first dialup ISP. He had just moved his servers, such as they were, out of his apartment. Things were growing.
Now, not so much. | |
| 
Richard B
Fur It Up
join:2007-06-22
Portland, OR
·Comcast
| Alas, poor EarthLink ! I knew him I was a happy EarthLink dial-up customer what changed was DSL. It made no sense for me to get “EarthLink” DSL over Verizon’s lines and Telecoms system. EarthLink big mistake thinking it could impose a dial-up business model on a broadband company even to the point of running off to Government. Now the one proud EarthLink has became a government contract leach.
It should had change its business model when it had a chance, for example, EarthLink move away for dial-up to web hosting and data warehousing. It cold had worked the incumbent telecoms and cable companies by offering e-mail, web, security services, and content thus allowing the telecoms and cable companies concentrate on running the physical network. | |
| 
sfdadfs
@comcast.net | Time Warner and Comcast Time Warner and Comcast basically own the internet access today, I don't see that changing either since they basically have a monopoly on the pipes. | |
| |
pinot noir6
Premium
join:2007-04-23
Columbus, OH
| Re: Time Warner and Comcast said by sfdadfs :
Time Warner and Comcast basically own the internet access today, I don't see that changing either since they basically have a monopoly on the pipes.
They built their pipes and/or own their pipes, so why shouldn't they have control over them (within reason of course). Besides, the phone companies still have a very large chunk of pipes. | |
| Baer
join:2001-04-21
San Clemente, CA
| It has been all downhill at E-Link for four years I was a customer of Interramp in the early 90's. Interramp was acquired by Mindapring soon after that and then they acquired Earthlink. THey used to be excellent, They did one thing very well and that was internet connectivity. Now they do nothing well.
I just had to use their service for the first time in years and what a shock. Their off shore people and not compitent, they contridict each other, they give incorrect information and are infuiating. As soon as I can get Fios I am gone. | |
| 
TransitMan
Premium,MVM
join:2000-09-05
Dayton, OH
clubs:
·RoadRunner Cable
 ·Time Warner VOIP
·Earthlink TrueVoice
| The Mighty EarthLink Is But... ...a shadow of its' former self.
And with the out-sourced and off-shored NONCustomer Service and Tech Support, who can barely read the script provided to them, it is no wonder they are falling fast.
I tried for days to get a replacement ATA, and after making it clear it was a warranty issue, they replaced it, with another unit the cooked itself in a week. Hence no VoIP from ELK for the last month, and Tech Support chat will do nothing, I must call in!!! But if they don't understand English, how the hell can I get another replacement.
Then TWC bumped speeds in my area. Talked to ELK about upping my speed package, only to be told it would be almost $80.00 per month as opposed to TWC and $45.99 per month (special pricing).
When I first started with high-speed internet, it was with the old Mindspring DSL (early adopter back then in this area). Carried it over to a new residence and that's when things started to unravel. No there is no more Mindspring, and EarthLink has all but shot itself in the foot.
It is now in the hands of folks who must answer to those who control the money and care less about the customers they serve.
It is time for EarthLink to go "Quietly into the night and never be heard from again".
--
PROUD TO BE THE DIRECTOR OF THE CRUNCHENSTEIN ASSOCIATION AND THE HOST OF CRUNCHENSTEIN #2 | |
| 
signmeuptoo
Tune in to XM 120. BOO
Premium
join:2001-11-22
LOSTinSpace
clubs:
·Future Nine Corpor..
·AT&T Southeast
| Die Earthlink, PLEASE DIE! My experience with Earthlink, for the last part of it, was greatly horrible. It took them over 8 months to get my DSL running, and then only a month later, they killed it and forced me on to cable. When you run a business that way, OF COURSE your going to hemorrhage consumers, and they will leave angry!
In the early days of dial up, Earthlink was fairly good, and was a pleasure to deal with, then management went to hell and got retarded. Typical American corporate stupidity and short sightedness. When we they ever learn?
Please just go away, Earthlink.
--
You know your life has gotten "DICEY" when it turns into an episode of LOST, like my ex wife, who I swear is one of "The Others"... !!!Save Lives: Join Team Discovery AND Team Helix, it is easy and painless to do!!! | |
| jervin123
join:2005-04-14
Philadelphia, PA | Can't pay them THEIR CAPTIVE PORTAL DOESN'T EVEN LET YOU PAY SOMETIMES... I had more then 24 hours of access without payment onetime... | |
| | | |
|
|
