EarthLink (NASDAQ: ELNK), the company that provides broadband and narrow-band internet services to both retailers and businesses, announced the launch of 4G wireless internet services. The standard plan is availabe for $29.95/month with an internet speed of up to 3Mbps and gives 5GB of monthly data. The premium plan at $49.95 provides the users with 10GB of monthly data at a speed of 6Mbps. EarthLink uses Clearwire’s 4G network (contract signed during last September) to offer this 4G service.
Earlier this August, EarthLink had posted one of its worst second quarter results, post which its stock price had tanked by more than 18%. EarthLink’s revenue from consumer services, its B2C segment, declined 13% Y/Y during Jun ’13. Declining cash reserves and declining number of gross organic subscriber additions makes the stock least attractive for investment. However, we believe that the 4G launch might help the company gain back its lost revenues and profits.
To see Earthlink’s latest stock price movement, click here (NASDAQ: ELNK)
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