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EarthLink Changes the Master Agent Game by Totally Reinventing Itself

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EarthLink Changes the Master Agent Game by Totally Reinventing Itself

September 11, 2012

  By Jamie Epstein, TMCnet Web Editor

Earthlink (News - Alert) Inc., an IT services, network and communications provider to over 150,000 businesses and one million consumers all over the country, has had a pretty busy year in 2012 and it still isn’t over.  Just looking at the first half of the year, the company’s business services revenue increased by 26 percent to $517.7 million.

While on the surface this looks positive, EarthLink's revenue overall has headed in a less positive direction, decreasing by $25.9 million from $543.6 million during the six months ending June 30, 2011, to $517.7 million in the same period this year, a recent Channel Partners article highlighted.

In a regulatory filing made public, the communications provider attributes this loss in revenue to outdated solutions such as certain legacy products like traditional voice, Web hosting and single-site broadband services.

On a brighter note however, it looks like the business has put a more heavy concentration on its services that are excelling and in the second quarter, business services revenues only fell five percent on a pro forma basis. And in the future, Equity Analyst Scott Kessler of S&P Capital IQ is predicting that EarthLink will see its revenue ramp up between two to five percent annually from 2012 to 2014. This growth is due to the success of its business services sector.

"We see notable investments in 2012 helping to build on considerable offerings and capabilities in business services," Kessler added in a stock report published just last week.

The aforementioned business is just one of many competitive local exchange carriers that are reorganizing their priorities and catering to multiple higher-end businesses that are in great need of next-generation information technology and communications solutions.

In addition, Cbeyond (News - Alert) Inc. and Windstream Corp. are also "trying to morph their business so they can sell more IT services," commented Donna Jaegers, a senior research analyst with D.A. Davidson & Co., in a statement.

Master agent Telarus (News - Alert) is the major, if not the number one seller for Earthlink, Cbeyond, and Windstream –with IT being a major focus for masters as well. 

Patrick Osborn, vice president of Business Development concluded, “Not only do we have a Cloud University with trainings each week, we also have an in-house sales engineer that is here to help them close their cloud opportunities. Also, we count cloud revenue as double for the Telarus President's Club qualification in order to further induce agents to sell cloud solutions offered by the CLECs.”

To find out more about Telarus Inc., visit the company at ITEXPO West 2012. To be held Oct. 2-5 at the Austin Convention Center in Austin, TX, ITEXPO (News - Alert) is the world’s premier IP communications event. Visit Telarus Inc. in booth # 832. For more information on ITEXPO West 2012, click here.

Edited by Rachel Ramsey
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