Blog Post

Cash Injection for Helio

Helio, the newbie ‘don’t call us a phone company’ MVNO, needs another round of allowance from its more traditional telecom parents. Reuters says that SK Telecom and EarthLink will each invest $100 million more into their joint venture sometime during the second half of this year.

That’s on top of the $440 million that the parent duo originally put forth. Will at least $640 million ensure that Helio lives? Who knows, but with the economics of the MVNO model already shuffling Amp’d into bankrupcy and turning ESPN into a purely mobile content play, it’s getting harder and harder to be anything but skeptical.

8 Responses to “Cash Injection for Helio”

  1. bizjunkie

    that’s why it’s called a startup! most startups post losses during first few years of operation… of course I see MVNO’s as a risky business… but companies such as Virgin Mobile has made it happen… and you can’t compare Apple with Helio… Apple has been around since the 70’s, have lots more experience and $$$$$ to create buzzes Helio only hopes for… Apple offers devices not mobile service, big difference… and can’t forget that everyone said Apple would flop when they lost their market share to Microsoft… Learn from Apple…

  2. katie

    the helio store in palo alto is opposite the Apple store. lets contrast the two:
    * iPhone: 700,000 sold so far ($350mm revenue in a weekend), even at a $250mm R&D effort (1500 engineer-years), thats a remarkable return on investment dollars.
    * Helio: $450mm invested, revenue ???

    the contrast on Friday evening was stark – TV cameras, Jobs, and a few hundred people @ Apple store and clearly an emotional connection w/ the product. meanwhile, the Helio store rarely has anyone inside the spacious store.

  3. surely this wasn’t a surprise, their own forecasts estimated a lost of US$330-360 million for the 2007 FY. An expected (and forecast) loss is at least better than an unexpected loss! (hmmm, but then I guess your point is that it’s still a loss all the same!)

  4. this is their last shot… one of which will go nowhere… i told employees at the helio store in santa monica… several months ago to start looking for new jobs….

    they have until jan 1 now… this will be helio’s last christmas..

    sorry sky.. back to the l. ron closet for you.