DSL Prime, DOCSIS Report, Fiber News, A Wireless Cloud

Revenue is up more than 50 cents per customer because of security sales at one of the few large remaining large dial-up Internet providers, suggesting a possible profit opportunity for others as well. Earthlink continues to be profitable as dial-up disappears. Revenue was down 23% despite continued heavy customer acquisition spending. Huff is realistic, "I am also aware of the technology and churn risk that has put an incredibly low terminal value on our business." They had some good news as well. Support costs per customer dropped 23% to $1.32, Longstanding customers make fewer phone calls, so as the market matures I believe most carriers are seeing support cost per customer dropping.

Some interesting bits from the call:

• "Our average combined customer support and technical support contact rate continue to reach record lows. Contact rates on per sub basis were down 11% in the quarter and have been reduced by 34% since the prior year fourth quarter driven by a nearly 40% decline in narrowband customer contact rates. Our average customer support cost per sub was $1.32 in the fourth quarter of 2008, down 18% from $1.60 in the prior quarter and 23% improvement over the $1.72 cost per sub we reported at the end of fourth quarter 2007.
• They have "$534 million in cash and marketable securities," and expect "strong future cash generation capabilities over the next few years." So Huff is looking to buy other companies. He hasn't found the deals he is hoping for, because "equity holders still believe that 2006 is right around the corner again."
  
• They are hoping to take advantage of the open access on networks funded by the stimulus.
• And a personal comment from CEO Huff: "I feel so fortunate that the majority of our employee impacts occurred in the third quarter and fourth quarter of 2007. When our people were able to benefit from our solid severance program then quickly move on to their next career opportunity. I think our quick move to a restructuring decision and our ability to be in the financial position to be fair with everyone impacted and generous with those that have been asked to stay and optimize the future value of this business. There has been a key ingredient in the success we have had so far." This contrasts with a senior Bell official who has ice water in his veins. I remember his bragging to Wall Street about how he was saving money by paying 50% less severance than another carrier also having layoffs.

Quotes from Seeking Alpha transcript