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1 Welcome to EarthLink Business November 29, 2011
1
Welcome to EarthLink Business
November 29, 2011
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Why EarthLink Business?
• Vision• Network• Financial Stability• Brand Recognition• Flexibility• New Revenue Opportunities
3EarthLink 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
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
STS:Hosted VoIP platform• Voice over IP services• Small and mid-size business customers
Expanding IT support capabilities on an extensive IP network
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About EarthLink
Over 1.6 million customer relationships
Over $1.3 billion in annualized revenue
Over 3,000employees
Mission Statement
The CompanyAnytime, anywhere,EarthLink connects
businesses to the power and possibilities of the
cloud.
We deliver a reliableand customized
experience our customers trust.
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Nationwide Footprint
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Fiber, Data Centers and Collocations
Note: Fiber route miles include those in the U.S. only.Source: Company filings, websites and press releases
Metro fiber route miles: 30,000 15,500
10,609 7,916 NA 7,500 9,000 NA
Extensive network with dense metro fiber, plus:• 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
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EarthLink Financial Strength
Revenue and Operating Cash Flow numbers as reportedOperating Cash Flow is a non-GAAP measure and is not determined in accordance with U.S. generally accepted accounting principlesOperating Cash Flow defined as Adjusted EBITDA less CAPEX
$145
$243
$357
0
50
100
150
200
250
300
350
400
Q3 2010 Q1 2011 Q3 2011
Mil
lio
ns
Revenue
$48$52
$60
0
10
20
30
40
50
60
70
Q3 2010 Q1 2011 Q3 2011
Mil
lio
ns
Operating Cash Flow
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Our Financial Position is a Differentiator
~$1.3B+ of Revenue$300M+ of EBITDA$200M+ of Free Cash Flow
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Strong and Well Recognized Brand Name
Source: 2010 B2B Telecommunications Study
Recent brand name study of IT professionals shows EarthLink has the highest brand recognition amongst SMB focused communication providers
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Source: Cisco Visual Networking Index – Forecast and Methodology 2009 – 2014, Gartner 2011, Wall Street research
(Petabytes per month)
North American IP TrafficSource: Frost & Sullivan
Growth Rates 2010 - 2014
Growing Market Opportunity
Rev
enue
($
Bill
ions
)
CAGR: 11%
Industry Growth Rates 2010 - 2014
IT Spend Dwarfs Telecom SpendSample $250M Company
Budget Category 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
Sources: D&B, Computer Economics, EarthLink internal analysis
Converging Opportunities to Expand Share of Wallet Potential for EarthLink
IT Budget• Operating: 1.5% to 2.0% of company revenue • Capital: .25% to .5% of company revenue
Telecom Budget• .10% to .20% of company revenue
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Core IP ServicesLocal National
Data Center &
VirtualServices
Security
Core Business Products
IT Support Services
Value Added
Services
• Local Voice - Lines - Trunks• Long Distance - 1+ - Toll Free
• Business Internet • Integrated Voice/Internet• MPLS
•Network Security - CPE or Hosted• Professional & Managed Security Services
•Hosted Voice•Voice w/System•Conferencing
- Video, Audio, Web•Cloud Computing &
Storage Services
•Data Center / Colo Services•Applications Services•Technical Care Services•IT Governance Services
Portals / Tools
Core Business Products
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EarthLink BusinessAccess Guide - Partners
Presented by Mike Frane
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EarthLink Business Network
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Ubiquitous IP CoverageIP Coverage by the Numbers • 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%)
MPLS &Internet Access
19,942 End Offices (80%)
Voice Serviceswith Access
9,631 End Offices (38%)
Voice ServicesBYOB
3,420 End Offices (14%)
IP SECCoverage
25,000 (100%)
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WirelessCable
ADSLT1 DS3 EthernetNxT1
Performance
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ADSL
• Broad metro availability
• Ability to provide CoS over ADSL
• Great option for low volume/remote locations
• High download speeds
Product Family Customer SegmentMPLS , Internet and Voice All Opportunities
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Wireless Data
• Private Wireless Connections
• Strong nationwide coverage• Truly diverse from the
wireline network• Great backup access• Fast service delivery
intervals
Product Family Customer SegmentMPLS Large (20+ site) Opportunities
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Resold ADSL
• Increased service footprint• Support for Canadian locations
Product Family Customer SegmentMPLS (IPsec) and Internet Large (20+ site) Opportunities
Resold CableProduct 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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• Provides secure access over the Internet
• Used with resold services
• Can allow the customer to provide their own access (BYOA)
IPsec
Product Family Customer SegmentMPLS Large (20+ site) Opportunities
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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
POTS Line REQUIREDCustomer Provided N/A N/A
Classes of Service (MPLS) 2 CoS† if < 512k 2 CoS† if < 512k N/A
Product Family MPLS, Internet & Voice
MPLS, Internet & Voice MPLS
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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
RegionallyCanada
Throughput Variable Variable Variable
POTS Line REQUIREDCustomer Provided N/A N/A
Classes of Service N/A N/A N/A
Product Family MPLS (IPsec) & Internet
MPLS (IPsec) & Internet
MPLS (IPsec) & Internet
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T1/NxT1
• 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
Product Family Customer SegmentMPLS, Internet and Voice All Opportunities
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DS3
• High bandwidth• Nearly ubiquitous coverage
Product Family Customer Segment
MPLS, Internet and Voice All Opportunities
Ethernet
• High speeds available• Cost effective bandwidth options
Product Family Customer SegmentMPLS, Internet and Voice All Opportunities
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High Capacity Access Matrix
DS1 OC-n Ethernet DS3
Availability 19,000+ COs Nationally Regionally Nationally
Throughput Up to 12MBWith bonding Up to OC-12 Up to 1GB Up to 45MB
CoS 6 CoS 6 CoS 6 CoS 6 CoS
Pricing Availability Standard ICB Standard (for NNI)
ICB for Others ICB
Product Family MPLS, Internet & Voice
MPLS, Internet & Voice
MPLS, Internet & Voice
MPLS, Internet & Voice
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What’s Next?
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Think of EarthLink Business when……..• Nationwide customers with multiple locations
• Customers with back-up, disaster recovery/ supplemental network needs
• 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
MPLS over ADSL with
analog IP voice
Ethernet with Hosted Voice or
SIP Trunking
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How do we help you win?
• 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
29Partner Wins
Scott EquipmentSolution: Multi-site MPLS
Monthly Recurring Revenue: $42,000
Eye Care Centers of AmericaSolution: MPLS and Cloud Solution
Monthly Recurring Revenue: $105,000
Pet Food ExpressSolution: Multi-site MPLS
Monthly Recurring Revenue: $17,000
