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story category Earthlink Cuts 900 Jobs
ISP continues to struggle for survival...
(old news - 03:00PM Tuesday Aug 28 2007)
tags: business · trouble · EarthLink
Earthlink has announced that they'll be trimming 900 jobs, as well as closing their Orlando, FL; Knoxville, TN; Harrisburg, PA and San Francisco, CA offices. The company expects to see "facility exit and restructuring costs" of $60 - $70 million due to the plan, but $25-$35 million in savings this year.

"While we recognize this is a difficult time for those affected individuals, this was a needed action for the company to better align our cost structure with our existing business," says new CEO Rola Huff. The company has been quietly offshoring the majority of their tech support over the last few years.

Earthlink's in a tough spot. They won't be able to share next-gen telco networks, the dial-up business is dying, their partnership with Covad goes only as far as that company's ADSL2+ network does, cost cutting is affecting support quality and their Muni-Fi efforts netted fewer subscribers than expected. And it's going to get worse:
Given current trends in the Internet access industry, management expects industry-wide gross subscriber additions to decelerate in 2008. This will result in fewer gross subscriber additions for EarthLink as it will no longer add new subscribers that do not yield a positive lifetime value for our shareholders. Additionally, as subscriber growth slows, the company expects to realize fewer migrations from narrowband to broadband. This trend should result in longer tenured existing subscribers generating higher life-time cash values.
While Earthlink struggles and the industry slows, incumbent operators are busy locking existing customers down with contracts. Huff had better have a magic plan in his hip pocket, or Earthlink is in big trouble.

Related:
  1. Earthlink Lost $80 Million On Muni-Fi Last Year
  2. Corpus Christi Finally Gives Up on Earthlink
  3. 2 out of 5 Cities Take Wi-Fi Back from Earthlink
  4. ISP Error Opens Security Holes in Web
  5. New Orleans Opts To End Wi-Fi Network
  6. Earthlink Closing Philly Wi-Fi Network June 12
  7. Earthlink Free Of Money Pit Helio -- Now What?
  8. Earthlink Pins Future Hopes On......Dial-Up?
Forums » Earthlink Cuts 900 Jobs
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KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Soon there will be no independents left....

... and all you'll have is your local Telco and Cable company... and if you're rural... neither.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK

Re: Soon there will be no independents left....

you don't have telephone in the woods? BS.
bmn
? ? ?
Premium,ExMod 2003-06
join:2001-03-15
hiatus
·Packet8
·Cox HSI

Re: Soon there will be no independents left....

said by inteller See Profile :

you don't have telephone in the woods? BS.
Broadband... He's clearly talking about broadband.
--
Prove it...
Save the Internet Time (NTP) service, use the pool.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK
·Cingular Wireless

Re: Soon there will be no independents left....

said by bmn See Profile :

said by inteller See Profile :

you don't have telephone in the woods? BS.
Broadband... He's clearly talking about broadband.
if thee is copper running to your house, you can get broadband...sometimes you just have to lobby for it.

haynosity
CovadVonage FST

join:2000-08-15
Spring, TX

Re: Soon there will be no independents left....

Hmmm so if your over 18000 feet from the CO, Then your good I guess. Now thats BS.

Logan 5
Dungeon Runners - Come get your Bling on
Premium,MVM
join:2001-05-25
The WasteLAN
·Pacific Bell - SBC

said by inteller See Profile :

if thee is copper running to your house, you can get broadband...sometimes you just have to lobby for it.
LOL... Clearly someone who's never been at the fringes of a CO with no RT in sight or been denied service other then low grade dialup (over coppper POTS} because of extreme rural conditions....
v8rail

join:2003-10-13
Ash Fork, AZ
·HughesNet Satellit..

said by inteller See Profile :

you don't have telephone in the woods? BS.
No landline, no powerline .... and I know many rural places that are that way

when I moved to this place, there was also only fringe Verizon cell coverage, at least that changed
--
Verizon Wireless Rev A, DW7000 with .74 dish (soon to be a birdbath)

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK
·Cingular Wireless

Re: Soon there will be no independents left....

well, that sounds like a thought out personal choice. don't sit there and tell me you moved to such wilderness without knowing there would be a lack of utilities....and then complain about it.
--
"WHEN THE LAUGH TRACK STARTS THEN THE FUN STARTS!"

Richard B
Fur It Up

join:2007-06-22
Portland, OR
·Comcast

The way it should be. I was an EarthLink customer who went first to Verizon. Yes EarthLink tried to offer DSL to me but I feel those who own the lines should be the one to provide the service. I was not going to give one cent to a "independent" who just going to slap their logo on the Telco’s equipment.
qworster

join:2001-11-25
Los Angeles, CA
·Brand X Internet
·RoadRunner Cable
·Vonage
·DSL EXTREME
·EarthLink


edit:
August 28th, @03:31PM

Dude..

They DON'T just 'slap' their sticker on someone else's equipment/service! The telco provides the "Last mile" of the circuit-with their equipment that earthlink leases from them, and Earthlink provides the NETWORK that FILLS that last mile with Internet!

Also, Earthlink provides Interent service at greater distances then many of the telcos do. My friend in MA, wouldn't HAVE broadband Internet if it wasn't for Earthlink. Verizon claimed that he was too far away from the Central Office to qualify for their DSL and cable isn't available at his house. Earthlink sold him 1500/384 DSL that's given him great service for many years!

Why don't you (and everyone else that thinks they "know it all") get the FACTS before you make your opinions and decisions???! That way, we'll all be better off, and you won't look ignorant!

Richard B
Fur It Up

join:2007-06-22
Portland, OR
·Comcast

Re: Dude..

"Also, Earthlink provides Interent service at greater distances then many of the telcos do. My friend in MA, wouldn't HAVE broadband Internet if it wasn't for Earthlink. Verizon claimed that he was too far away from the Central Office to qualify for their DSL and cable isn't available at his house. Earthlink sold him 1500/384 DSL that's given him great service for many years!"

SHOW ME.
Take my area, Verizon owns the wiring, switching and DSLAM equipment. All EarthLink is doing is reselling bits that is traveling on the Telco's hardware.

N3OGH
They both suck, we're so screwed
Premium
join:2003-11-11
Philly burbs

Re: Dude..

As my mother used to say.....

"Fight nice, children."

jsimmons
Premium,MVM
join:2000-04-24
Falls Church, VA
·Cox HSI

When a customer orders DSL from Earthlink, that DSL circuit (which Earthlink can't provide itself) can be provisioned by either an ILEC (like Verizon), or CLEC (like Covad) - depending on who can offer service at that address. Covad has to have DSLAM equipment co-located at the Verizon POP serving that address before its serevice can be selected. So sure, in many cases Verizon will get the order to provide the DSL circuit, but still it has to route the packets onto Earthlink's network (Not Verizon's). It is just contracted to carry the packets over the "last mile". In cases where both the ILEC and CLEC can provide DSL service to the address, its a toss-up which provider gets the DSL order from Earthlink. In some cases the Customer (if smart enough) can request one or the other and Earthlink may honor the request.
--
"Everything should be made as simple as possible, but not one bit simpler."- Albert Einstein

whfsdude
Premium
join:2003-04-05
Washington, DC

said by Richard B See Profile :

SHOW ME.
Take my area, Verizon owns the wiring, switching and DSLAM equipment. All EarthLink is doing is reselling bits that is traveling on the Telco's hardware.
Earthlink/COVAD put their own DSLAMS in the CO and only lease the copper. Which means they can offer custom sync rates with their own DSLAMS/network and also can run ADSL2 and IDSL. Verizon cannot/will not do that.

In fact, Verizon doesn't own any ADSL2 DSLAMs.
battleop

join:2005-09-28
00000

"Take my area, Verizon owns the wiring, switching and DSLAM equipment." Yes, this is called "The Last Mile" There is much more to DSL service than ploping out DSLAMS.

AT&T will bring our customer's DSL circuit back to their Central office. Then they will mux all of our DSL clients together. They then cross connect our fiber to their shasta box and send our DSL customers down our fiber to our datacenter. We then terminate the DSL customers in our routers, with our IPs. They are then sent out to the internet over our backbone feeds. This is how we serve each LATA we are in. The multi LATA ISPs do this a little differently, but it's the same basic concept.

People bitch enough about 1 Vrad. Imagine how bad they would bitch if every ISP that provides internet put out a box. I am in a small to medium market. I know of 4 Local ISPs, plus Earthlink, AT&T, AOL, and a half dozen other ISPs/Clecs that offer DSL. Just for arguments sake lets say there were 10 ISPs offering DSL. That's 10 times the number of boxes on the side of the road and 10 times the number of cables on the telephone poles and if they decided to take it further maybe 10 times the number of telephone poles.

Offering DSL is more than just "reselling bits that is traveling on the Telco's hardware."

jsimmons
Premium,MVM
join:2000-04-24
Falls Church, VA
·Cox HSI

Re: Soon there will be no independents left....

LOL... Covad's DSL which Earthlink used to service my address was FAR superior to Verizon's equivalent. I KNOW - I tried both at the same address over the same copper. Verizon just couldn't Git 'er done wit the same speed and reliability.

FWIW, Covad had their OWN equipment co-located in Verizon's POP. All Covad did was lease a pair of copper wires to my house to get the DSL signal from their equip. to my modem. They then routed the data packets onto Earthlink's network. Verizon got a few bucks a month for Covad's use of their copper, but aside from that, Verizon had nothing to do with my service.

Alas, I eventually bailed on DSL and headed for the higher bandwidth of cable and never looked back. Verizon FIOS, while offered in parts of NoVA under an agressive buildout, has never reached my neighborhood
--
"Everything should be made as simple as possible, but not one bit simpler."- Albert Einstein

jadinolf
I love you Fred
Premium
join:2005-07-09
Ojai, CA
·DSL EXTREME

said by KrK See Profile :

... and all you'll have is your local Telco and Cable company... and if you're rural... neither.
Yep, it's sad but we must move on.
--
This post printed on 100% recycled bytes
qworster

join:2001-11-25
Los Angeles, CA
·Brand X Internet
·RoadRunner Cable
·Vonage
·DSL EXTREME
·EarthLink


edit:
August 28th, @03:06PM

Put a fork in them...

Put a fork in them, they're done.

Unfortunately, they (like AOL) stayed with dialup too long.
The Communications Act of 1996 is partly to blame too. It gave the telcos everything they wanted and the FCC's narrow intrepretation of it required the telcos to give back nothing in return. The FCC's statement back in 1996 that this was "a document addressing the Nation's communications needs for the next 50 years" wound up being a pile of BS, especially when you consider that the Republican FCC's interpretation of the sharing part of the law was that it applied to telco plant in place as of when the agreement was signed (ie: 1996). In other words, the only plant they have to share is copper; fiber does not have to be shared. Remember, the telcos DO get paid for sharing-they don't do it for free!

No wonder why the evil Verizon is killing their copper plant and replacing it with FIOS; elsewhere they're simply letting it fall apart.

The telcos, cable companies and other utilities are NOT YOUR FRIENDS! They are out to SCREW the consumer every way they can! And with a few years of one party dominance, they have done so with impunity. Problem is, it's going to take YEARS for the damage to be undone-if it even ever can be.

A P CC
Premium
join:2003-07-26
..

Re: oh well

oh well, there goes the neigborhood

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Re: Put a fork in them...

said by qworster See Profile :

Put a fork in them, they're done.
A perfect metaphor for Earthlink's future:


Richard B
Fur It Up

join:2007-06-22
Portland, OR
Ahem

It was the Clinton Administration who pushed and signed off on it.
qworster

join:2001-11-25
Los Angeles, CA
·Brand X Internet
·RoadRunner Cable
·Vonage
·DSL EXTREME
·EarthLink


edit:
August 28th, @03:29PM

Yes.

And it was the Bush administration's FCC commissioners and Chairman (Powell) that changed how the Communcations Act was interpreted.

How many anti consumer FCC votes do you think are decided by a 3-2 margin?

ALL of them!

(For those who don't know, the FCC is headed by five Commissioners, three appointed by the sitting President and two from the other political party; right now that splits 3:2).

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK
·Cox HSI
·AT&T Southwest

Re: Put a fork in them...

And it was the Republican legislature and the current administration's FCC who gutted it and turned it into a weapon AGAINST competition. Far from fostering competition, it merely lured many 3rd parties into spending money before dropping the anvil on them, effectively killing them dead.
--
"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!)
GA2006

join:2007-03-28
Dixon, MO

Ok.. wait a minute... I'm an earthlink customer by default.. they merged with my original ISP..

I have dial-up because I live in a very rural area of the country, and broadband is simply unavailable here, as is cable. My only recourse would be satellite, and I haven't heard much good about that... Not to mention the expense...

So what's a poor message board addict to do???? Any advice?

A P CC
Premium
join:2003-07-26
..

Re: Put a fork in them...

find & get a good ISP.
96510730

join:2006-08-30
Kingwood, TX

Re: Put a fork in them...

said by A P CC See Profile :

find & get a good ISP.
I believe she said

"..... I'm an earthlink customer by default.. they merged with my original ISP..

I have dial-up because I live in a very rural area of the country, and broadband is simply unavailable here, as is cable. My only recourse would be satellite, and I haven't heard much good about that... Not to mention the expense..."

This means she has very little choice other than satellite. There are no other ISP's to chose from.

I believe GA is asking for advice, not sarcasm.
22773138

join:2006-08-29
Texas

Rural areas have very limited interconnect options. It is not like they are in a big city and can choose what is best for them. It is more like help.....can I get anything?

Anyone who has phone service pays a fee to have lines or towers built in rural areas. Maybe help in on the way.

While waiting, just have fun.
GA2006

join:2007-03-28
Dixon, MO

said by A P CC See Profile :

find & get a good ISP.
Toby, you don't know how much your advice means to me... I'm so appreciative of your concern... However, as was stated, the only other option that I have is satellite. Since you are such a good friend... perhaps you wouldn't mind helping me out with how best to finance the cost of the equipment for satellite.

I have some trepidation about it, though, from what I've read on this forum, there are some distinct drawbacks to satellite, like Fair Access... Perhaps, since you are a regular here, and so technically astute, you could explain this to me, since I have no experience with the technology.

I wait for your response....

A P CC
Premium
join:2003-07-26
..
·AT&T Southwest


edit:
August 29th, @10:00AM

Re: Put a fork in them...

said by GA2006 See Profile :

said by A P CC See Profile :

find & get a good ISP.
Toby, you don't know how much your advice means to me... I'm so appreciative of your concern... However, as was stated, the only other option that I have is satellite. Since you are such a good friend... perhaps you wouldn't mind helping me out with how best to finance the cost of the equipment for satellite.

I have some trepidation about it, though, from what I've read on this forum, there are some distinct drawbacks to satellite, like Fair Access... Perhaps, since you are a regular here, and so technically astute, you could explain this to me, since I have no experience with the technology.

I wait for your response....
THE VERY FIRST THING YOU NEED TO DO IS have your husband move you out of that (underground) cave that YOU ADMITTED you live in
Then tell him that using electricity isn't that exspensive,compared to the cost of using a small generator for icebox & your computer only,you admitted that you have DIALUP SERVICE,so that means you have a landline, so why not spend a little extra & go with a good well established ISP & DSL..maybe others can give you some other suggestions here.

96510730

join:2006-08-30
Kingwood, TX

Re: Put a fork in them...

said by A P CC See Profile :

said by GA2006 See Profile :

said by A P CC See Profile :

find & get a good ISP.
Toby, you don't know how much your advice means to me... I'm so appreciative of your concern... However, as was stated, the only other option that I have is satellite. Since you are such a good friend... perhaps you wouldn't mind helping me out with how best to finance the cost of the equipment for satellite.

I have some trepidation about it, though, from what I've read on this forum, there are some distinct drawbacks to satellite, like Fair Access... Perhaps, since you are a regular here, and so technically astute, you could explain this to me, since I have no experience with the technology.

I wait for your response....
THE VERY FIRST THING YOU NEED TO DO IS have your husband move you out of that (underground) cave that YOU ADMITTED you live in
Then tell him that using electricity isn't that exspensive,compared to the cost of using a small generator for icebox & your computer only,you admitted that you have DIALUP SERVICE,so that means you have a landline, so why not spend a little extra & go with a good well established ISP & DSL..maybe others can give you some other suggestions here.

I'm sorry Toby, this doesn't make any sense. GA only said she lives in an area where there are limited choices. She said nothing about living in a cave.

I know this lady personally and she lives in a beautiful berm house in the middle of Missouri - how does that equate to a cave and how will that help her with ideas on internet provider choices.
GA2006

join:2007-03-28
Dixon, MO

Re: Put a fork in them...

I'm sorry Toby, this doesn't make any sense. GA only said she lives in an area where there are limited choices. She said nothing about living in a cave.

I know this lady personally and she lives in a beautiful berm house in the middle of Missouri - how does that equate to a cave and how will that help her with ideas on internet provider choices.


I don't understand, Oma... I have never talked, in this forum, about my home. Why would Toby say that I live in a cave? This is of a concern to me. Perhaps I should talk to the moderators about this strange post, and how such a similar post showed up on an entirely different forum where I do post?

If there is a moderator reading this thread, please, comment on this...
GA2006

join:2007-03-28
Dixon, MO

edit:
August 29th, @10:57AM

Re: Put a fork in them...

I happen to live in a very comfortable 3 bedroom, 1 3/4 bath house, with electricity... Why do you think I don't have electricity, Toby? It doesn't make sense.. it's very creepy...
GA2006

join:2007-03-28
Dixon, MO

Toby.. Do you know anything about this post? It seems that someone may be stalking us from this board...

»forums.go.com/abclocal/KTRK/mess···=1015382
ncbill
Premium
join:2007-01-23
Winston Salem, NC
Go to findanisp.com

Up at the cabin I can now get a cheap ISP locally (vtisp.com), where it used to be the phone company or Earthlink only.
GA2006

join:2007-03-28
Dixon, MO

Re: Put a fork in them...

said by ncbill See Profile :

Go to findanisp.com

Up at the cabin I can now get a cheap ISP locally (vtisp.com), where it used to be the phone company or Earthlink only.
Thanks, I'll check it out.. I've alread talked to my telephone company, Windsteam, and there are no plans to move broadband into my area...
nasadude

join:2001-10-05
Rockville, MD
·Comcast

riddle me this

if competition is so robust, why are all the CLECs disappearing?

won't that make competition not so robust? and will this make the FCC, the incumbents and their astroturf orgs shut up about "robust" competition? (actually, that's a rhetorical question, as these groups will never shut up about "robust" competition, as long as there is one telco and one cableco)

See 10 replies to this post

AR
Premium,ExMod 2001-04
join:2000-09-21
Toronto, ON

They should outsource to India...

...but wait..that didn't help, did it?
Edward1978

join:2007-07-23
De Soto, IL
·Verizon Online DSL

They are just a bunch of cheap SOBs.

I am amazed it is 2007 almost 2008 & broadband is not in more areas, there are 3rd world countries with more broadband coverage!!! It sucks about Earthlink, cause they provide DSL when others don't. I wish I had a few mill. so I could start a Company to provide broadband for rural areas, it is apparent the cheap phone/cable companies aren't going to. I wish Clinton got that National Broadband Bill passed before Bush got in.
ncbill
Premium
join:2007-01-23
Winston Salem, NC
·AT&T Southeast

Re: They are just a bunch of cheap SOBs.

Change that to "we're a bunch of cheap..."

I switched to the $10/month AT&T DSL plan the day it was offered.

And I am switching everyone else I know as fast as possible (most don't need cable's speed to surf and email)

Great for us (price guaranteed through 12/2009), but $10/month is not much incentive for any company to build out broadband access.

I only see further downward pressure on prices with upcoming technologies such as WiMax (Sprint is the cheapskate's choice for cellular broadband)

ijustbetcha

@rr.com

earthlink will cut jobs

I bet that earthlink will cut about 900 jobs today. mark my words

Stool Sample

@comcast.net

another one bites the dust

i thought these boards were for rejoicing over the demise of various companies? what is going on here? where am i?

fatmanskinny
Premium
join:2004-01-04
Atlanta, GA
·Comcast Digital Vo..
·Comcast
·EarthLink

The words she says sums up what the workers feel!

»youtube.com/watch?v=xKUwcCp7LPE


Nuff said and God bless to all impacted. This too, shall pass.
--
The only place where Success comes before Work is in the dictionary.
Stovokor

join:2007-08-02
Omaha, NE

Goodbye and good riddance.

As a former EarthLink employee who lost his job due to cheap overseas labor, I personally hope they're saving lots of money. I guess flushing it down the toilet is preserving it in some way.

b1gdr3
I Blame Your Mother

join:2001-07-28
Harrisburg, PA

hmmmm

they had jobs left in Harrisburg PA?

Archivis
Your Daddy
Premium
join:2001-11-26
Earth
·Verizon FIOS

Re: hmmmm

I worked with Earthlink until the big layoff in March of 04. That's when they let go of thousands, boasting that in two years from that point, their stock prices would go up and they would save millions of dollars. When I left, the stock price was somewhere around ten dollars. Now it's 25% less than that.

I was in the Harrisburg office. When they left, I knew of a handful of folks that took up jobs in Atlanta and and even smaller few who still held jobs in Harrisburg, but I believe they held more critical positions as they were one of the few who had the knowledge to keep that portion of the company going. In the Web Hosting division, I know of two to three folks who managed to keep their jobs. I wasn't quite sure where their office was, but I thought I remembered someone mention that it was going to be that small one by Home Depot (Lowes, whatever the hell it is now), Pet Smart, etc, off of Derry Street.

Either way, it's been Earthlink's middle and upper management that has dropped the ball on this, but their employees paid the price. They've been on the steady decline since the company took over (merge? lol) Mindspring.

Oh well. Nearly four years later. Finding a tech job in a suddenly saturated market wasn't easy.
--
I melt faces.
Radioman991

join:2001-09-24
Dayton, OH

A case of voting with the wallet.........

...like I did, and my 74 year old father did.

While I wish nothing but good luck to those ELink employees who have to find a new way to feed the family, Let the company die.

Earthlink DSL worked GREAT for 6 years, and then line issues. I could get NO ONE to fix the problem...an OBVIOUS line issue, after trying 3 different modems, including 2 that had never been removed from the box previously. Spoke to someone in India every day 3 times a day for 7 days....probably STILL an open trouble ticket! After 1 week of virtually no service, I fired Earthlink. Found a new provider (Cincinnati Bell), and all is good. I am a telecommuter, and the pipe just HAS to WORK! I could not get Earthlink to fix the problem, so, SEE YA!

If and when Cincinnati Bell behaves the same way, they are gone too.

My dad was a dialup customer...worked fine, but he now has a broadband alternative (DSL) at the same price as his old dialup. So, so long ELink for him.

In my case, they could not / would not continue to provide the service I was paying for, so they were sent packing. The experience I had with the lack of customer service left me with no slack to cut them. Sorry for the employees, but I will not shed a tear at Earthlink's troubles.

SigEp1995

join:2000-11-17
Alumni Hall

Re: A case of voting with the wallet.........

I had dropped them about 5 years ago due to the fact that I couldn't get the 3Mbps package at the same price as a new user. Because of that action, I saw how they treat their existing customers and left them for good. Although I'm with Comcrap right now, I'm still getting more bang for my bucks until my contract expires. After that, it's time to go buy lube.
--
| Sigma Phi Epsilon | My Ride |

skj
Welcome to the far side of reality
Premium,Mod
join:2002-04-04
Atlanta, GA

Host:
Charter HSI/CATV
Earthlink DSL
Embarq
ISP b2b etc
Cisco

Hey, the stock is up 7%

I guess that is the good news. The bad news is that Earthlink's "technical" support is already abysmal. It is hard to imagine it getting any worse with the layoffs, but I am sure it will. It looks like the Earthlink forum here has also lost its official tech support help, which was a great asset to the members here, as it saved many people from having to deal with telephone, or God forbid, "Chat" support.
--


The foundations of character are built not by lecture, but by bricks of good example, laid day by day.

brian417

join:2000-10-23
Springfield, OH

good riddiance to rubish

GOOD! I hate earthlink. it's a long story but I hope they fold like a cheap suit.

A P CC
Premium
join:2003-07-26
..
·AT&T Southwest

Re: good riddiance to rubish

EarthLink layoffs may be bump in road for Wi-Fi plan
Internet provider firing 900 workers, but its new strategy may not affect Houston's project
Internet service provider EarthLink, hired by the city to build and run Houston's wireless network, said Tuesday it will lay off nearly half its work force nationwide.

The announcement comes after delays in the start of the Houston project and rumblings from the company's chief executive that it will scale back or change its business model for municipal wireless initiatives.

But amid the bad news may be some optimism for Houston: The model EarthLink is moving toward in other cities is already part of the plan here.

The Atlanta-based company declined to comment on how the elimination of 900 positions, including the president of the municipal wireless unit, may affect the Houston project, which has been stalled while EarthLink re-evaluates its municipal approach.

Company officials plan to discuss with each of the cities where they're doing business the need for city government to serve as the company's primary customer, spokesman Jerry Grasso said.

Houston's contract already is based around that model. But agreements with other cities, such as Philadelphia, don't include that provision.

"We will be talking to each city on an individual basis to discuss the needed changes in our new business model, which includes them stepping up to some sort of anchor tenancy agreement," Grasso wrote in an e-mail.

He confirmed that Donald Berryman, who as president of EarthLink Municipal Networks was overseeing the Houston project, is leaving the company.

Building a wireless network has been a priority for Mayor Bill White, who was unavailable for comment Tuesday afternoon. He's expected to talk about the initiative this morning during the weekly City Council meeting, spokesman Frank Michel said.

Industry analysts said staffing cuts and office closures are not necessarily a surprise, since EarthLink's new CEO, Rolla Huff, has said publicly he plans to streamline the company. But such a large adjustment may not bode well for the Houston project, which is already months behind schedule.

"It's certainly going to slow the process down," said Michael Garfield, a talk show host who specializes in technology and has moderated several Wi-Fi forums for the city. "I don't think it's going to totally kill (the project)."

EarthLink's contract, which was approved by the council in mid-April, calls for the company to begin building the 640-square-mile network this summer. The city agreed to pay $2.5 million over five years to use the network. But EarthLink has yet to sign a contract with CenterPoint Energy to use its light poles around the city, the first step in the process.

Huff has expressed unease about the financial viability of wireless projects, which have yet to prove on a large scale that they'll draw enough customers to make a profit. The project here would be the largest in North America and require a $50 million investment.

The company plans a conference call with investors this morning.

The contract sets deadlines for EarthLink, requiring the company to build at least half the network within a year and the remainder the following year, but the start date is vague. If the company defaults, it could owe the city up to $5 million.

White said about a week ago he will request compensation for any significant delays.

"I would intend to either wrap something up within a fairly short period of time — probably a matter of weeks, not months — or proceed with our legal remedies against the company," he said.
»www.chron.com/disp/story.mpl/fro···264.html
dbldbl

join:2006-01-23
San Francisco, CA

what positions were eliminated in the respective cities?

am curious, especially with the SF, CA positions... as I remember when EarthLink had a sign up on a San Jose, CA building back in the go-go dot com days of yore (and those jobs were gone long ago as well)
glparker4

join:2002-11-02
Marietta, GA
·AT&T Southeast
·Comcast Formerly ..

Earthlink: Officially On Life Support

Here in the Atlanta area, there are several people that have or had Earthlink service, many of them are former Mindspring customers. Almost every person that I know that has Earthlink DSL service experienced problems. When trying to help out these poor souls, I was forced to speak to Earthlink's nonexistent tech support in India which was a complete waste of our time. Here is my post in the Earthlink forum and the responses from the Earthlink fan boys: »Why is Earthlink so incompetent?

My most memorable tech support call occurred when I was assisting a client with his slow DSL connection. His line was provisioned at 384kbps and Earthlink was charging him $60/month! The only English that the "tier 2 tech support specialist" knew was "reboot your computer" and "reset the modem". After repeating that process 10 times, we tried to convince him that it would not increase the speed. However, since he did not know English, every time that we said something, his response was, "I am sorry sir, can you please repeat the statement that you recently declared?"

Earthlink is just a sick puppy waiting for some company to buy it out and put it out of its misery. Let's hope it happens soon. Either way, Earthlink's days are numbered!

joeblobl

@arlaw.com

Re: Earthlink: Officially On Life Support

said by glparker4 See Profile

Earthlink is just a sick puppy waiting for some company to buy it out and put it out of its misery. Let's hope it happens soon. Either way, Earthlink's days are numbered!
[/BQUOTE :


I agree with that statement, I worked for them years ago when they were simply just incredible. Then they hired a new director person who had no previous sales experience to direct the sales division at retail. She was smart but she didn't understand the dynamics of retail. Within 6 months everyone left. We realised it was a complete losing battle even through numerous tries to fix what we knew was wrong with the program but unaccepted by her and the rest of the corrupted upper management.

I had a customer who tried to cancel one time and the indian customer service rep was swearing at him in hindu. The customer happened to be Indian and told me everything.

Earthlink right now sours everything it touches. I have yet to see a shread of hope for thier possible rebuild of the company. The only way they could do that is to rebuild thier call centers here in the US and get that customer service they so desperately need.
Forums » Earthlink Cuts 900 Jobs


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