Earthlink Pulling Back From Helio, SK Telecom To Invest An Additional $270 Million
Duncan Riley
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Earthlink is stepping back from its investment in Helio, stating that they will not be putting any more money into the company.
At the same time, Earthlink’s joint venture partner in Helio, SK Telecom, has invested an additional $270 million and will likely take a majority share holding. According to an Infoworld report, Helio is expected to lose between $340 million and $360 million this year.
In a statement, Earthlink said that Helio ended August with 130,000 subscribers, and expects to end the year with between 200,000 and 250,000 subscribers and revenue of $140 - $170 million.
EarthLink said that it will amend the Helio partnership agreement “to reflect the additional investment by SK Telecom and their future governance of Helio.” SK Telecom said Helio may be able to raise funds from the market without drawing further investment from either partner.
Helio is one of the few large MVNO’s still standing after the spectacular failure of Amp’d Mobile in July and the failure of small MVNO’s from ESPN among others.





i can only imagine how much cash helio is blowing on marketing, and it’s all *terrible* - i see flashy full-page inside cover ads in tons of magazines, and i still don’t really know wtf helio is. they’re trying to be all trendy and hip looking but they’re missing the point entirely - telling me what they are and why i should be interested in them as an alternative to things i already use!
do they make cool looking phones? are they an alternative to verizon/at&t/tmobile etc? beats me.
Waayyy better than iPhune!
http://fakesteveballmer.blogspot.com
It’s called Google gilltots.
Also, Earthlink said they are not putting more money in right now, not that they won’t ever.
So they’ve spent all that money on advertisement and still expect us to google stuff up?!?! Stu-pid!!!
Sometimes the best advertising deals with brand recognition as well as getting future/potential customers talking. If you were a part of their demographic, you’d understand the advertising (it’s a cell phone company), have your curiosity piqued and maybe do a little digging for more info as well as chat with your friends/family about it.
I own one of their phones (the Ocean) and what I’ve seen so far is the younger generation lusts over the phone and bombards me with questions and requests to check it out, the older folks I know have no clue who Helio is but admit that the phone is pretty neat nonetheless.
Usually when I show the dual sliding numberpad and keyboard the younger exclaim, “that’s so coooooollll!” Whereas the older folks get a smile and their eyes go a little wide and say, “Hey! That’s neat!” or just a simple, “Wow”.
Naturally, these are generalizations and I would expect a good majority of TC readers are already familiar with nifty gadgetry and not likely to have the same reactions.
The bottom line? Yeah, the ads might seem like they suck, but to teen/tweens and early adopter gadgeteers, they’re spot on. (Before you tell me, “I’m an early adopter with first gen and I still think the ads suck and don’t get them…”, ask yourself this–are you seriously so clueless that you had no idea what/who Helio is or what their phones look like? While not as prolific as iPhone hype, there’s tons of information on nearly every gadget blog & website on these phones–perhaps you really aren’t their demographic if you seriously don’t know.)
Looks better than Iphone
http://vidsonly.blogspot.com
Here is good reason why they might be losing money. Just a thought. I went to purchase a Helio Ocean yesterday and Helio wanted a $350 deposit on top of the $295 for the phone and $30 activation. I have close to a 700 credit score and haven’t put a deposit down on anything much less a cell phone since I was 18, now 31. WTF is wrong with them. I was so excited to leave AT&T until that happened. I told them for damn near $700 it better do things like suck my you know what…..
Jeremy, I’m guessing maybe you need to follow up with the credit agencies. My credit score is nowhere near 700 and I did not have to pay a deposit. I also was buying two phones and negotiated them down to $225 a piece.
My wife and I both have Oceans and love them so far. I love the fact that simple things like the ability to have a custom ringtone for whoever I want is included instead of something I need to buy an application for like on my Treo.
I also haven’t had a single dropped call or even a garbled once since moving over from Cingular/AT&T.
Rumor is that SK Telecom is looking to buy an American carrier (Sprint being the top choice.) That would probably make Helio cheaper and more profitable for the firm.
Still no match for the BlackBerry. Too much of a reminder of Sony Mylo + phone. Boy, was that a flop or what?
Told you so. Just silly
Jeff D, Thanks for your reply. I actually ordered one from Helio directly via web and had no problems. Then I could them directly the next day to inquire about why there was no deposit required. Their response was that there was a glitch either on their end or the reseller’s end with the system because the only way it would ask for a $350 deposit (which is the max) is if the customer did not have a social security number. They said everything looked great on my end and the new phone would be in my hands by Friday.
My contract if finally up with Tmobile this January, and I have been eying Helio since they launched. The cost is a little higher than what we pay now, and all the features (web, and data access) grabbed the wife and I’s attention, but the tipping point for her was them releasing a very sexy flip phone.
Features+Design matter, and I hope that Helio can manage to slow the cash bleed long enough to find profitability, and stick around long term.
This company has features that Tmobile cannot even pretend to have and AT&T wish their savior iPhone could bring, and Sprint and Verizon with all their highspeed this and that ought to have. It is not good that and MNVO upstages you (I think its on Sprints network), and a clear sign that the US oligopoly is stagnating the market. The two current best ideas they have to make money is their Early Termination fees not being pro rated, and continuing to raise the price of individual txts not on plans. Almost as effective as the RIAA’s sue and persecute the customers plan of attack.
This is why Helio sucks, and I’m not the only one that thinks this way.
Do a Google search for “Helio Money Back” and you will see what is their problem.
Here is my experience:
I mistakenly ordered a Helio from their on-line website, and decided to return it by refusing the FedEx package (as instructed by Helio).
By doing this I would assure myself their money back guarantee, since the phone would be returned within 30 days.
I talked to 6 different people from the help desk and billing department, and got a different story from ALL OF THEM! Finally, someone told me they would give me the credit back onto my credit card the day they got the package back at the company.
So, I tracked the package, they got it … I waited two days … no credit placed back on my credit card. I called, asked to talk to employee such and such, they said the company was too big for them to find any one individual, and that they could help. I told them what happened, and what I was told, and this person said, “Uh, no. You have to wait 5-6 weeks to see any refund. I said, Why? I don’t have you product or use any of your services. How can you charge me for something of yours that I don’t have or use? “That’s just how we do things here”, they said.
And I said, Oh. I see. It only takes you five minutes to charge my credit card electronically but takes 6 weeks to electronically credit back the charge. That makes sense (sarcasm).
A week later, I called to see where things were at. ANOTHER employee told me that my account was never cancelled, that I had forgotten. I told her I had cancelled it the day I had ordered it! She said, yeah, you’re right, that’s what it says right here in your record. But, since it didn’t get done and I’m cancelling it for you know, that will add another week for your refund to come back.
HELIO SUCKS!!! DO NOT TRUST THEM WITH YOUR MONEY!!!!
HELIO has one of the coolest “not a phone company” out there. But they don’t want a urban base. There are a many of stories out there about how they have had chances to work with radio stations like “Hot 97″ in NY. They had a chance to do promotions with the station, but said they weren’t doing it at the time. Then turned right back around and did a mostly white club in Manhattan. There are allot of Black’s and Latinos who are starting to hear the stories and moving away from this company. I know that if they don’t change there ways, there will be problems. Their top downloads are urban and their top video rings are urban. BUT THEY SHUN THIS PART OF THE MARKET, JUST ASK THEM.
Truth, you are far from the truth as possible. Rumors are just that rumors. If you actually took the time to do some research you’d know. First off they don’t do radio advertisement because it costs too much money and that money could be used elsewhere. Sponsoring a night club which cost maybe a couple hundred compared to a couple thousand. I’d rather go for the couple hundred. They are not a racist company if that’s what you’re trying to imply. They do table days at colleges that have a MIX of races. Obviously, people are always trying to say something when they don’t know anything. This is how stupid rumors start.