Earthlink Inc - Early History

EARLY HISTORY

Earthlink Network was founded in 1994 by Sky Dayton. Dayton had developed the idea for Earthlink when he became frustrated with his ISP after unsuccessful attempts to log on to the Internet. In 1993, he set plans in motion to create an ISP whose major focus would be providing customer service. Dayton sought out investors Reed Slatkin and Kevin O'Donnell and secured $100,000 in funding for his new business. Offering technical support by phone, Dayton had secured his first customer by July 1994. Earthlink's first member logged on to the Internet using one of the start-up's 10 modems.

Earthlink became increasingly popular as use of the Internet by businesses and consumers grew quickly. In 1995, the firm teamed up with Netscape Communications Corp. in a deal that provided Earthlink members with Netscape's Navigator, an Internet browser. Dayton also launched Earthlink Software, an innovative package that set up computers for Internet access. In August of that year, Earthlink broadened its service area dramatically when it signed a deal with UUNET Technologies. The alliance allowed Earthlink to use UUNET dial-up access numbers to provide national service in 98 U.S. cities. The company also became the first ISP to offer unlimited dial-up access for a flat rate of $19.95 per month, allowing members to surf the Web without time constraints.

Earthlink continued its expansion and in July of 1996 partnered with PSINet to offer dial-up access across the United States and Canada. The firm also teamed up with industry giant Microsoft Corp. and began distributing its Internet Explorer browser to members. Earthlink, in turn, was included on Micro-soft's Windows 95 operating system desktop. Along with capturing a large portion of individual accounts, the company also began to focus on providing services to businesses as well. In late 1996, it began to offer nationwide integrated services digital network (ISDN) and frame relay services, which provided higher-speed access to the Internet.

In January 1997, Earthlink went public with a membership of nearly 300,000 North American-based individuals and businesses. The firm launched its online mall later that year, promoting the e-business efforts of many e-tailers such as BarnesandNoble.com, NetGrocer, and Travelocity by offering links to their Web sites at the online mall. The company also kept pace with ever-changing Internet technologies and began offering 56K-flex modem lines, which were twice as fast as 28.8K modems. Earthlink and Charter Communications also initiated a partnership to provide high-speed Internet access through cable modems—an emerging technology at the time—to Charter's customers in California.