The ISP is dead. Long live the ISP (dial-up provider EarthLink)
The ISP is dead. Long live the ISP (dial-up provider EarthLink)
Keegan P. Business 2.0, December 2006, Vol. 7 No. 11, Start page: 135, No. of pages: 5
Purpose – to profile Gary Betty, CEO of EarthLink and evaluate his plans to transform it from dial-up provider into a total communications company. Design/methodology/approach – provides a brief outline of Betty’s background and family history, describing him as tenacious and intensely competitive. Traces Betty’s relationship with the company from the small,near-bankrupt internet service provider founded by “surfer dude” Sky Dayton to compete with AOL, through the years of strong growth and more recent period of decline. Observes that although EarthLink can continue to provide dial-up services for people in rural areas and low-technology customers profitably for some time to come, its share price is currently at a low level. Attributes this to Wall Street’s scepticism about plans to transform the company by investing profits from dial-up services into new ventures. Describes the planned range of new products, including cellphones targeted at the young adult demographic, a wireless joint-venture with SK Telecom, a selection of VOIP services and the provision of citywide wireless internet (WiFi) services in places such as Anaheim, Philadelphia and New Orleans. Critically evaluates these initiatives, assessing their chances of success in their target markets. Originality/value – reviews the strategy of dial-up provider EarthLink to cope with competition from broadband services.
Keywords: Corporate strategy, Internet service providers, New products
