GENERAL

The following discussion and analysis should be read in conjunction with the Company's consolidated financial statements and related footnotes for the year ended December 31, 2008 and December 31, 2007 included in this Annual Report on Form 10-K. The discussion of results, causes and trends should not be construed to imply any conclusion that such results or trends will necessarily continue in the future.

YEAR ENDED DECEMBER 31, 2008 COMPARED TO DECEMBER 31, 2007

REVENUE. Revenue for the year ended December 31, 2008 increased by $3,660,174 or 55.7% from $6,567,264 for the year ended December 31, 2007 to $10,227,438 for the same period in 2008. The increase in Internet sales is attributed to the acquisition of Internet access and web hosting customers of ISPs. Although the Company continues to sign up new customers, competition from ubiquitous nationwide telecommunications and cable providers threatens significant and sustainable organic growth. To insure continued strength in revenues, the Company has acquired and plans to continue to acquire the assets of additional ISPs, folding them into its operations to provide future revenues. These new acquisitions, for the year ended December 31, 2008, yielded approximately $1,435,022 in additional net revenues. The Company also plans to market more aggressively on a national level utilizing scalable tactics and targeting a much larger Internet customer base.

COST OF REVENUE. Costs of revenue for the year ended December 31, 2008 increased by $817,379 or 36.4% from $2,244,184 for the year ended December 31, 2007 to $3,061,563 for the same period in 2008. The increase is due primarily to providing services to recently acquired customers. Telecommunication expenses increased by $970,415 or 47.8% from $2,030,525 for the year ended December 31, 2007 to $3,000,940 for the same period in 2008. Cost of revenue as a percentage of sales decreased 4.3% from 34.2% for the year ended December 31, 2007 to 29.9% for the same period in 2008. The Company is continuing to attempt to negotiate more favorable contracts with telecommunication vendors and making the network capacity more efficient. The Company expects to continue creating these efficiencies through wholesale businesses recently acquired.

OPERATING EXPENSES. Selling, general and administrative expenses increased $2,441,053 or 72.5% from $3,366,910 for the year ended December 31, 2007 to $5,807,963 for the same period in 2008. This is due primarily to an increase in amortization expense. Amortization expense, including impairment increased $1,277,698 or 78.8% from $1,621,922 for the year ended December 31, 2007 to $2,899,620 for the same period in 2008. This increase is directly related to recently acquired customers. Bad debt expense increased $1,023,888 or 221.2% from $462,874 for the year ended December 31, 2007 to $1,486,762 for the same period in 2008. This increase is directly related to recently acquired customers

INTEREST EXPENSE. Interest expense for the year ended December 31, 2008 increased by $6,420 or 4.0% from $158,734 for the year ended December 31, 2007 to $165,154 for the same period in 2008. This increase was a result of financing recent acquisitions of customer bases.

BALANCE SHEET. Net accounts receivable increased $438,961 or 146.4% from $299,863 on December 31, 2007 to $738,824 on the same date in 2008. This increase is substantially due to additions to the customer base from recent acquisitions. Customer list decreased $1,256,221 or 22.9% from $5,480,635 on December 31, 2007 to $4,224,414 on December 31, 2008. This decrease is substantially due to scheduled amortization. Deferred tax assets increased $421,031 from none on December 31, 2007 to $421,031 on December 31, 2008. This is due to the recognition of tax benefits of prior year tax losses. Other assets decreased $93,630 or 13.8% from $677,267 on December 31, 2007 to $583,637 on December 31, 2008. This decrease is substantially due to scheduled amortization of non-compete agreements associated with acquisitions. Accounts payable increased by $2,179 or 2.8% from $78,713 on December 31, 2007 to $80,892 for the same period in 2008. Accrued income taxes increased $754,777 from none on December 31, 2007 to $754,777 on December 31, 2008. Accrued expenses decreased by $43,139 or 31.3% from $138,021 on December 31, 2007 to $94,882 on December 31, 2008. Deferred revenue increased by $204,009 or 15.0% from $1,361,606 on December 31, 2007 to $1,157,597 on December 31, 2008 representing primarily new customers that have prepaid for services on December 31, 2008. Notes payable, less current portion, decreased $779,221 or 46.0% from $1,694,836 on December 31, 2007 to $915,615 on December 31, 2008. This is primarily result of the payoff of all bank debt leaving only seller notes from acquisitions.

LIQUIDITY AND CAPITAL RESOURCES

Cash and cash equivalents totaled $527,553 and $232,249 at December 31, 2008 and at December 31, 2007, respectively. EBITDA was $4,338,166 for the year ended December 31, 2008 as compared to $2,629,162 for the year ended December 31, 2007.

                                                       2008             2007
      EBITDA for the year ended December 31,       $  4,338,166     $  2,629,162
      Interest expense                                 (165,154 )       (158,734 )
      Taxes                                            (333,746 )              -
      Depreciation                                      (43,570 )        (58,534 )
      Amortization                                   (2,899,620 )     (1,621,922 )
      Net income for the year ended December 31,   $    896,076     $    789,972

Sales of Internet services which are not automatically processed via credit card or bank account drafts have been the company's highest exposure to collection risk. To help offset this exposure, the Company has added a late payment fee to encourage timely payment by customers. Another effort to improve customer collections was the implementation of a uniform manual invoice processing fee, which has also helped to accelerate collections procedures. These steps and more aggressive collection efforts have shifted accounts receivable to a more current status which is easier to collect. The accounts receivable balance in the Current category increased from 57.2% to 58.7% of total accounts receivable from December 31, 2007 to December 31, 2008. The balance in the 30+ day category decreased from 24.1% to 21.6% of total accounts receivable from December 31, 2007 to December 31, 2008. The balance in the 60+ day category increased from 18.7% to 19.7% of total accounts receivable from December 31, 2007 to December 31, 2008.

The aging of accounts receivable as of December 31, 2008 and 2007 is as shown:

                                    2008                      2007
                  Current   $ 433,518        58.7 %   $ 171,446        57.2 %
                  30 +        159,585        21.6 %      72,337        24.1 %
                  60 +        145,721        19.7 %      56,080        18.7 %
                  90 +              -           - %           -           - %
                  Total     $ 738,824       100.0 %   $ 299,863       100.0 %

Forward-looking statements

This report contains certain forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Stockholders are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the Company's ability to expand its customer base, make strategic acquisitions, general market conditions, competition and pricing. Although the Company believes the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements contained in the report will prove to be accurate.