Subscriber Values: Q3 2007

by Alex Goldman ISP-Planet Managing Editor [December 14, 2007]

Subscriber numbers are from ISP-Planet's list of Top U.S. ISPs and from company reports (and are as of September 30, 2007). Market capitalization data is as of market close, September 28, 2007, as reported on The Wall Street Journal (sub. reqd.), except for PAETEC, which is as reported on Forbes.

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 EarthLink
EarthLink subscribers were 2,865,000 narrowband (and shrinking), 1,093,000 broadband (and growing), 104,000 webhosting accouts (shrinking slowly), and 98,000 business accounts consisting of 30,000 dialup and 68,000 business accounts. The company is is growing its broadband subscribership through new accounts and is increasing ARPU, but is experiencing net subscriber losses. EarthLink's struggles, including churn which is honestly detailed in the SEC report, illustrate how difficult it is to be a non-monopoly ISP today.

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

Notes on CLECs
Fairport, N.Y.-based PAETEC reported serving 115,000 T-1 lines. Since it also delivers VoIP and also delivers high margin T-1 lines, its average revenue per customer (ARPU) is higher than many other CLECs on this list, justifying the price difference.

Santa Clara, Calif.-based Covad Communications Group had 505,100 broadband lines (432,800 wholesale and 72,300 direct), 2,300 VoIP customers with 4,000 sites, and 3,600 fixed wireless broadband customers.

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 191,767 access lines. It had 143,000 cellular customers, 64,000 "interexchange" customers, and 56,000 internet customers. Not counted are advertisers served through the company's directories. The company is more like a rural ILEC than a CLEC.

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