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Welcome to
EarthLink Business
November 29, 2011
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Why EarthLink Business?
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Vision
Network
Financial Stability
Brand Recognition
Flexibility
New Revenue Opportunities
EarthLink Business is Born
Seven companies with matching core values and focus combine to be a
market leader in nationwide IP Networking and Managed Services.
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EarthLink Managed Services Acquisitions
Expanding IT support capabilities on an extensive IP network
STS:
Hosted VoIP platform
• Voice over IP services
• Small and mid-size
business customers
Logical Solutions:
Virtual Computing Platform
• Enterprise class data center
• Web and application hosting
• On demand server virtualization
Business Vitals:
Managed IT Security
• Tier IV data center
• Security Operations Center
• IT security and Risk Management
xDefenders:
• Managed IT and Cloud Security
• Security Operations Center
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About EarthLink
Mission Statement
Anytime, anywhere,
EarthLink connects
businesses to the power
and possibilities of the
cloud.
We deliver a reliable
and customized
experience our customers
trust.
The Company
Over 3,000
employees
Over 1.6 million
customer relationships
Over $1.3 billion
in annualized revenue
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Nationwide Footprint
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Fiber, Data Centers and Collocations
Extensive network with dense metro fiber, plus:
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Metro fiber
route miles:
30,000
15,500
Note: Fiber route miles include those in the U.S. only.
Source: Company filings, websites and press releases
Over 28,000 Miles of Total Fiber
90 Metro Fiber Markets in 25 States
500+ NNIs With Other Carriers Across the Country
5 Secure Data Centers on EarthLink MPLS Fiber network
Access Agnostic Connectivity: T-1, DS3, DSL, Ethernet, Wireless
10,609
7,916
NA
7,500
9,000
NA
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EarthLink Financial Strength
Millions
Revenue
400
$357
350
300
$243
250
200
150
$145
100
50
0
Q3 2010
Q1 2011
Millions
Operating Cash Flow
Q3 2011
70
$60
60
50
$48
$52
40
30
20
10
0
Q3 2010
Q1 2011
Q3 2011
Revenue and Operating Cash Flow numbers as reported
Operating Cash Flow is a non-GAAP measure and is not determined in accordance with U.S. generally accepted accounting principles
Operating Cash Flow defined as Adjusted EBITDA less CAPEX
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Our Financial Position is a Differentiator
~$1.3B+ of Revenue
$300M+ of EBITDA
$200M+ of Free Cash Flow
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Strong and Well Recognized Brand Name
Recent brand name study of IT professionals shows EarthLink has the
highest brand recognition amongst SMB focused communication providers
AT&T
86%
Verizon
76%
Sprint
68%
Qwest
57%
EarthLink
43%
Windstream
29%
Level3
28%
XO
24%
PAETEC
23%
twTelecom
22%
Cbeyond
19%
MegaPath
19%
Source: 2010 B2B Telecommunications Study
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19,019
(Petabytes per month)
16,136
12,988
10,051
7,091
5,115
Revenue ($ Billions)
Growing Market Opportunity
21.0
18.0
15.0
12.0
9.0
6.0
3.0
2009
2010
2011
2012
2013
2014
North American IP Traffic
Source: Cisco Visual Networking Index – Forecast and Methodology 2009 – 2014,
Gartner 2011, Wall Street research
Converging Opportunities to Expand Share
of Wallet Potential for EarthLink
MPLS/DIA/IP
VoIP (inc. SIP)
Growth
Rates
2010 -Rates
2014 2010 - 2014
Industry
Growth
Source: Frost & Sullivan
IT Spend Dwarfs Telecom Spend
Sample $250M Company
IT Budget
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Operating: 1.5% to 2.0% of company revenue
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Capital: .25% to .5% of company revenue
Budget Category
Telecom Budget
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.10% to .20% of company revenue
Sources: D&B, Computer Economics, EarthLink internal analysis
Hosted Voice
Spend $
% of Revenue
IT Budget
$3.8M
1.5%
IT Capital Budget
$770k
0.31%
Telecom Spend (Annual)
$400k
0.16%
Telecom Spend
(Monthly)
$34k
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Core Business Products
Portals / Tools
Core Business Products
Data
Center &
Virtual
Services
IT
Support
Services
Value
Added
Services
Security
Core IP Services
Local
National
•Hosted Voice
•Data Center / Colo Services
•Voice w/System
•Applications Services
•Conferencing
•Technical Care Services
- Video, Audio, Web
•IT Governance Services
•Cloud Computing &
Storage Services
•Network Security
- CPE or Hosted
• Professional & Managed Security Services
• Local Voice
- Lines
- Trunks
• Long Distance
- 1+
- Toll Free
• Business Internet
• Integrated Voice/Internet
• MPLS
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EarthLink Business
Access Guide - Partners
Presented by Mike Frane
EarthLink Business Network
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Ubiquitous IP Coverage
IP Coverage by the Numbers
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25,000 Total universe of End
Offices in U.S.
23,362 End Offices where
EarthLink has voice and/or
data coverage (93%)
19,942 End Offices where
EarthLink has access
capabilities (80%)
13,051 End Offices with local
voice coverage (52%
9,631 End Offices where
EarthLink has local coverage
and access (38%)
3,420 End Offices where
EarthLink has local availability
but no access–BYOB (14%)
IP SEC
Coverage
25,000 (100%)
MPLS &
Internet Access
19,942 End Offices
(80%)
Voice Services
with Access
9,631 End
Offices (38%)
Voice
Services
BYOB
3,420 End
Offices
(14%)
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Performance
Wireless
ADSL
Cable
T1
NxT1
DS3
Ethernet
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ADSL
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Product Family
Customer Segment
MPLS , Internet and Voice
All Opportunities
Broad metro availability
Ability to provide CoS over ADSL
Great option for low volume/remote locations
High download speeds
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Wireless Data
Product Family
Customer Segment
MPLS
Large (20+ site) Opportunities
• Private Wireless
Connections
• Strong nationwide coverage
• Truly diverse from the
wireline network
• Great backup access
• Fast service delivery
intervals
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Resold ADSL
Product Family
Customer Segment
MPLS (IPsec) and Internet
Large (20+ site) Opportunities
• Increased service footprint
• Support for Canadian locations
Resold Cable
Product Family
Customer Segment
MPLS (IPsec) and Internet
Large (20+ site) Opportunities
• Increases the service footprint
• High speeds available
• Good for fill-in where CoS and latency
aren’t an issue
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IPsec
Product Family
Customer Segment
MPLS
Large (20+ site) Opportunities
• Provides secure
access over the
Internet
• Used with resold
services
• Can allow the
customer to provide
their own access
(BYOA)
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Layer 2 Low Cap Access Matrix
ADSL (SL)
ADSL (NSL)
Wireless Data
Availability
~10,000 COs
~3,300 COs
Nationwide
Throughput
Variable
Variable
Variable
REQUIRED
Customer Provided
N/A
N/A
2 CoS† if < 512k
2 CoS† if < 512k
N/A
MPLS, Internet &
Voice
MPLS, Internet &
Voice
MPLS
POTS Line
Classes of Service
(MPLS)
Product Family
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Layer 3 Low Cap Access Matrix
ADSL (SL)
ADSL (NSL)
Cable
Availability
~70 US COs
~95% of Canada
~0 US COs
~95% of Canada
Regionally
Canada
Throughput
Variable
Variable
Variable
REQUIRED
Customer Provided
N/A
N/A
N/A
N/A
N/A
MPLS (IPsec) &
Internet
MPLS (IPsec) &
Internet
MPLS (IPsec) &
Internet
POTS Line
Classes of Service
Product Family
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T1/NxT1
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Product Family
Customer Segment
MPLS, Internet and Voice
All Opportunities
Tried and true access technology
Reliable business class service performance and SLAs
Nearly universally available
Competitive pricing on inter-regional networks and in major metro areas
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DS3
Product Family
Customer Segment
MPLS, Internet and Voice
All Opportunities
• High bandwidth
• Nearly ubiquitous coverage
Ethernet
Product Family
Customer Segment
MPLS, Internet and Voice
All Opportunities
• High speeds available
• Cost effective bandwidth options
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High Capacity Access Matrix
DS1
OC-n
Ethernet
DS3
Availability
19,000+ COs
Nationally
Regionally
Nationally
Throughput
Up to 12MB
With bonding
Up to OC-12
Up to 1GB
Up to 45MB
6 CoS
6 CoS
6 CoS
6 CoS
Standard
ICB
Standard (for NNI)
ICB for Others
ICB
MPLS, Internet &
Voice
MPLS, Internet &
Voice
MPLS, Internet &
Voice
MPLS, Internet &
Voice
CoS
Pricing
Availability
Product Family
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What’s Next?
Think of EarthLink Business when……..
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• Nationwide customers with multiple locations
MPLS over
ADSL with
analog IP voice
Ethernet with
Hosted Voice or
SIP Trunking
• Customers with back-up, disaster recovery/ supplemental network
needs
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MPLS with class of service over ADSL
MPLS Wireless
Internet Service
• Access to a private cloud and all the applications that drive their bottom
line!
• You are looking for ways to generate NEW revenue for your business
• Customer’s looking for financially stable company with trusted brand
recognition
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How do we help you win?
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Local channel manager support
Sales SME Overlay
Dedicated Sales Support
Access to Executive Team
Dedicated Sales Engineering Support
Dedicated Account Management for your
customers
• Commitment to Partner Channel
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Partner Wins
Scott Equipment
Solution: Multi-site MPLS
Monthly Recurring Revenue: $42,000
Eye Care Centers of America
Solution: MPLS and Cloud Solution
Monthly Recurring Revenue: $105,000
Pet Food Express
Solution: Multi-site MPLS
Monthly Recurring Revenue: $17,000