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EarthLink Business Details Network Investment to Pump Up Its Portfolio Strength | Oct 20, 2011 | Network Access and VPN Services | Analyst: Brian Washburn Event Summary October 17, 2011 -- EarthLink is adding network routes and equipment to scale its national network and expand availability of its services. The network expansion includes new 10 Gbps Ethernet-on-SONET fiber rings in Ohio and Pennsylvania, additional VoIP access points and IP/MPLS infrastructure, and greater 3G EV-DO wireless data availability. EarthLink is also bringing its Rochester, NY; Marlborough, MA; and Columbia, SC data centers on-net via 10 Gbps fiber rings between the facilities and to EarthLink's IP network. EarthLink plans to complete these upgrades by Q1 2012. | Read Press Release | Quick Take Analytical Summary • Current Perspective: Moderate on EarthLink Business' series of network upgrades and expanded data center connectivity, because the company is making the necessary moves to bolster national availability of its VoIP infrastructure and services, to consolidate and increase capacity on its network, and to handle replication for services redundancy across its data centers. • Vendor Importance: High to EarthLink Business, because while services targeting single-site SMBs can be provided on a regional basis, if the company wants to pursue larger multi-location accounts, it needs a national, unified product portfolio. EarthLink also needs a collection of value-added services (i.e., managed network and data center/cloud services) to meet the needs of enterprise customers that might want to offload management of elements of IT to their service provider (e.g., to cloud-based services). • Market Impact: Moderate on the enterprise services market, particularly competitors in the Eastern U.S., because EarthLink Business has grown its way through acquisition to become a billion-dollar, super-regional CLEC. The company is intent on growing its enterprise customer base. The managed services and cloud services that it is building up will also give the company opportunities to sell additional services to its existing (largely mid-market) regional customer bases. CLIENTS ONLY Current Perspective Competitive Strengths and Weaknesses Response & Recommendations Buyer Actions Analytical Perspective | Client access - Full report in Network Access and VPN Services | More information Top Top 9/30/2011

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EarthLink Announces Network Expansion and Enhancements for Scalability and Growth

ATLANTA, Oct. 17, 2011 -- EarthLink, Inc. a leading IP infrastructure and services company, today announced plans to expand and enhance its state-of-the-art network infrastructure. Additional network routes and equipment will be added to EarthLink's network to provide incremental growth capacity and scalability, support new nationwide leading edge product offerings, and ensure that EarthLink's strong, diverse network remains a significant differentiator.

The network expansion includes major transport network builds, new OC-192 10 Gigabit Ethernet fiber rings, additional high-speed access points for private Voice over IP network traffic, nationwide IP MPLS and EVDO wireless network expansions, and bringing EarthLink's enterprise class data centers on-net with high-capacity fiber rings.

"We are proactively enhancing our robust network to help our customers stay ahead of the technology curve, to take advantage of the increasing demands for bandwidth, and to be at the forefront with cloud-based managed services and IT security solutions," said Rolla P. Huff, EarthLink Chairman and Chief Executive Officer.

With the addition of new OC-192 10 Gigabit Ethernet network routes, EarthLink is effectively increasing capacity across its nationwide IP MPLS network 16 fold, further extending its high performance, scalable and secure network. New OC-192 fiber rings in Ohio and Eastern Pennsylvania, and a new high-speed route between Philadelphia and Pittsburgh, will add incremental capacity in the Northeast to support its customers future growth in that business-rich region of the country. EarthLink is also extending its EVDO wireless network to broaden its ability to offer secure, redundant wireless networks to businesses with remote locations, and to provide customers with a cost-effective back-up network solution.

Over the past five months, EarthLink has added three new data centers to its network and is making additional investments in network capacity, connectivity and redundancy. The data centers in Rochester, NY, Marlborough, MA and Columbia, SC will all have 10 Gigabit fiber rings connecting each location to both the IP backbone and each other. This amount of connectivity allows EarthLink to provide real time data replication and cloud services to enterprise cloud and managed services customers.

EarthLink expects the majority of these network enhancements to be completed by the end of 2011, with the entire project slated for completion in the first quarter of 2012. The company is not changing its 2011 capital expenditures guidance.