EarthLink and SK Telecom Step Up Investment in Helio
7/2/07 – Reuters is reporting this morning that Atlanta-based Internet service provider EarthLink and South Korean phone company SK Telecom will invest another $100 million each in mobile service and content startup Helio.
Westwood-based Helio, the mobile virtual network operator, or MVNO, resells basic mobile phone service from network providers and packages value-added offerings on top of that service. The business model is on the whole unproven, and Helio and other MVNOs have been the subject of intense speculation as to whether or not they will survive, long term. Adding to the criticism is the recent chapter 11 bankruptcy filing by fellow Los Angeles-based MNVO Amp’d Mobile.
However, the decision by its primary investors to provide such a significant additional investment is a significant boost to Helio’s prospects. In addition, although EarthLink and SK Telecom’s financial filings show Helio losing considerable cash, the company has reported impressive average revenue per user of $90-$100—considerably more than the mobile phone industry average. The company has also garnered a steady stream of positive attention for its Ocean dual slider phone, which now faces increased competition with the debut of Apple’s iPhone.
Helio – www.helio.com
