EarthLink loses more dial-up customers, seeks ISP merger

EarthLink says it wants to merge with other ISPs, possibly AOL, to keep its dial-up business alive. Although the company had a profit of $53 million in the second quarter of 2008, it had 30% fewer dial-up subscribers than last year with a significant drop (21%) in revenue. EarthLink pulled out of the municipal wireless business and its joint venture with SK Telecom, the MVNO called Helio. EarthLink lost a lot of money on Helio. They invested more than $200 million, while SK Telecom invested close to $500 million. Virgin Mobile acquired Helio this year for $39 million.