Subscriber Values: Q3 2006

by Alex Goldman ISP-Planet Managing Editor [December 28, 2006]

Subscriber numbers are from ISP-Planet's list of Top U.S. ISPs and from company reports (and are as of September 30, 2006). Market capitalization data is as of market close, December 6, 2006, as reported on Yahoo! Finance.

Our ISP rankings now contain only one pure, public ISP. United Online no longer considers itself an ISP. Time Warner is downplaying the importance of AOL.

Notes on ISPs
EarthLink subscribers were 3,330,000 narrowband (and shrinking), 1,857,000 broadband (and growing), and 116,000 webhosting accouts (a shrinking number). The company is failing to convert subscribers from dialup to broadband, but is growing its broadband subscribership through new accounts.

United Online is presenting itself to investors as a services provider, not an ISP, and is therefore no longer on this list. Its SEC form notes the company offers services under the following brands:

• Internet Access: NetZero, Juno, and BlueLight Internet
• Social Networking: Classmates and StayFriends
• Webhosting: FreeServers, 50megs, Bizhosting, and Global Servers
• Premium Email: NetZero MegaMail, Juno MegaMail, and emailMyName
• Online Photos: PhotoSite
• Premium Content: NetZero Family Pack and Juno Family Pack.

Our CLEC listings require close examination. We are comparing a wide variety of companies, and we welcome your comments

Notes on CLECs
This entire sector will change in 2006 as the FCC continues to cut line sharing, forcing each CLEC to build its own network.

Charlotte, NC-based US LEC is merging with Paetec and saw its stock rise sharply.

Santa Clara, Calif.-based Covad Communications Group reported 1,343 VoIP stations but no longer reports the number of VoIP end users. It provides VoIP for EarthLink, but for no other ISPs that we know of. It no longer discloses dialup subscriber numbers.

Anchorage, Alaska-based General Communications (CGI) competes with the ACS Group (below). The company reported 109,100 access lines (67,400 residential and 41,700 business), 82,100 broadband subscribers (76,800 residential, 7,100 business, with dialup not disclosed), 121,800 residential cable TV subscribers (hotel and business subscriber numbers not disclosed),28,300 subscribers of Digital Local Phone Service (DLPS) (27,200 residential and 1,100 business), and 102,700 long distance customers (this number not always disclosed, this quarter it included 91,200 residential and 11,500 commercial accounts) for a total of 444,000 subscribers.

Anchorage, Alaska-based Alaska Communications Systems Group (The ACS Group). It served 208,042 access lines (not counting UNE-P and UNE-L). It had 129,000 cellular customers, 61,000 long distance customers, and 55,000 internet customers. Not counted are advertisers served through the company's directories. The company may be more like a rural ILEC than a CLEC.

Reston, Va.-based Talk America Holdings, Inc., more familiarly known as Talk.com, is merging with Cavalier. It has sharply accelerated its infrastructure buildout and now has 475,600 subscribers on its own network.

Pittsford, NY-based Mpower Communications has been acquired by TelePacific.

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