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EarthLink posted Q1 net income of $16.4 million (12 cents per share), down from $33.3 million (22 cents per share) in the year-ago period, attributing the fall to a decrease in adjusted EBITDA and wider losses related to its HELIO wireless joint venture.

Broadband revenues, meanwhile, rose 6 percent to $115.5 million.

EarthLink ended the quarter with 1.7 million broadband subs, and 2.1 million "premium" narrowband subs, which dropped by 179,000 (net subs) in the period. EarthLink, however, added 85,000 net broadband and voice customers during Q1.

EarthLink is marketing its Home Phone Service (over Covad lines) in Dallas, Seattle, San Francisco, and San Jose. By year-end, EarthLink "may" extend the offering to Atlanta, Chicago, Los Angeles, Miami, New York City, Philadelphia, San Diego and Washington, D.C.

Citing EarthLink's efforts in VoIP and municipal Wi-Fi initiatives, EarthLink CEO Garry Getty noted that the cash coming in from its traditional Internet access business is fueling its "transition from ISP to total communications provider."

On the Wi-Fi front, EarthLink has already won bids in Philadelphia, Pa.; and Anaheim, Miliptas and San Francisco, Calif.

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