Subscriber Values: Q1 2007

by Alex Goldman ISP-Planet Managing Editor [July 17, 2007]

Subscriber numbers are from ISP-Planet's list of Top U.S. ISPs and from company reports (and are as of March 31, 2006). Market capitalization data is as of market close, June 28, 2007, as reported on The Wall Street Journal (sub. reqd.).

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 3,208,000 narrowband (and shrinking), 1,849,000 broadband (and growing), 109,000 webhosting accouts (shrinking slowly), and 105,000 business accounts consisting of 36,000 dialup and 69,000 business accounts. The company is failing to convert subscribers from dialup to broadband, but is growing its broadband subscribership through new accounts. The company has a new CEO who has promised to cut costs.

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
Santa Clara, Calif.-based Covad Communications Group 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. It is reported to be preparing to cut 8 percent of its workforce.

Anchorage, Alaska-based General Communications (CGI) competes with the ACS Group (below). The company reported the following subscribers:

Anchorage, Alaska-based Alaska Communications Systems Group (The ACS Group). It served 193,853 access lines. It had 135,750 cellular customers, 65,043 "interexchange" customers, and 57,176 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, has merged with Cavalier and is off the list.

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

Fairport, N.Y.-based Paetec is no longer declaring subscriber numbers, only "subscriber equivalents" which is a device that allows a company to inflate its numbers by counting a large bandwidth subscriber as if it were several subscribers. It is therefore off the list.

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