ALSO: MindSpring, EarthLink to link

September 23, 1999
Web posted at: 3:34 p.m. EDT (1934 GMT)

By Robin Lloyd
CNN Interactive Senior Writer

(CNN) -- "We're number two" is the rallying cry of the Internet service provider announced Thursday with the merger of MindSpring and EarthLink.

The service will be the same -- focusing on high-quality connections and customer service -- but the entity aims to compete with industry leader America Online and chip away at its 18 million customers.

"Strategically, we bring members an alternative to AOL," EarthLink President Charles "Garry" Betty said at a briefing for analysts Thursday.

Betty will be the chief executive of the new service, which will be called EarthLink, based in Atlanta and boast about 3 million customers when the merger deal closes.

"We are deftly leapfrogging AT&T and Microsoft to create the clear alternative for high quality and reliable pure Internet access," Betty said.

Both EarthLink and MindSpring recently launched broadband service, and a trend toward that high-speed option will continue with more dial-up customers feeling comfortable switching over to DSL, said EarthLink spokeswoman Kristen Kappos.

EarthLink projects 100,000 DSL customers by 2000, with the new EarthLink expected to garner about 150,000 for the digital service, offered for $49.95 monthly.

MindSpring has agreements for DSL with BellSouth and Covad, while EarthLink has several DSL partners, including Pacific Bell and Sprint.

The new company will adopt MindSpring's "Core Values and Beliefs," which MindSpring founder Charles Brewer said include respect for individuals, honesty and integrity and an urgency for what customers want. Brewer will be chairman of the new EarthLink.

Kappos mentioned a consumer survey that ranked MindSpring and EarthLink numbers one and two, respectively, in overall customer satisfaction among the largest national ISPs.

MindSpring, based in Atlanta, and EarthLink, based in Pasadena, California, were started independently about five years ago.

Gird for marketing

MindSpring President Mike McQuary said the new entity will spend $300 million in sales and marketing next year, expecting to end 2000 with about 5 million members and to pass the 8 million member mark in 2001.

"We will work just as hard on member retention and believe we can retain a monthly churn rate of 4 percent or lower," he said. McQuary will be the new EarthLink's president.

In recent years, Internet service subscribers have been unaware of AOL alternatives such as EarthLink and MindSpring, he said. In the next year, that will change, he said.

"We are going to make sure that every potential customer in the country knows about us," he said.

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.