Earthlink is one of the larger ISPs and it’s having trouble financing it’s growth of new customers. It’s spent a lot of money on a variety of projects (cell phone service, WiFi service to municipalities) but it’s core business of dial-up and DSL service doesn’t seem to be generating much money for it.
It has a loyal base of customers that have been using it for years – I’m one. Many of these are dial-up customers. It’s spent millions over the years acquiring new customers but finds that to many of them are not staying around long enough for Earthlink to recoup its investment.
To help staunch the bleeding of money, Earthlink will let go of 900 customers and close some regional offices.
Internet.com writes CEO Rolla Huff joined in June, after the sale of Mpower Communications, where he was chairman and CEO. His former Mpower crony, Joe Wetzel, joined EarthLink as COO in July. If past is prologue, the duo may plan to shop the company around, looking for a replay of the sale of their previous company, a regional provider of broadband data and voice services to business customers, for $204 million.
What’s this mean to you?
I have no clue what Earthlink’s future plans are, but if you’re an Earthlink customer keep close watch on what’s going on.
I don’t think there is a worry about any of your services (email, web hosting, Internet access) being disrupted but it’s important that you know what’s going on with your key vendors.
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