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{{Short description|Defunct American mobile virtual network operator}} | |||
{{otheruses|Helios (disambiguation)}} | |||
{{Infobox company | |||
{{Infobox_Company | | |||
| name = Helio, Inc. | |||
company_logo = ] | | |||
| logo = ] | |||
company_type = Joint venture between ] Inc. and ] Inc. | | |||
| caption = | |||
foundation = ], ] | | |||
| type = ] | |||
location = ] | | |||
| traded_as = | |||
key_people = ] - ] <br> ] - ]<ref>http://www.intomobile.com/2008/01/29/sky-dayton-goes-from-helios-ceo-to-chairman.html</ref> <br> ] - ]<ref>http://www.alleyinsider.com/2008/2/helio_reorg_cfo_three_execs_out</ref><ref>http://valleywag.com/355690/cfo-and-three-vps-quit-helio-chairman-to-follow</ref> | | |||
| defunct = {{end date and age|2010|05|25}} | |||
industry = Wireless Services | | |||
| fate = Acquired by ] | |||
company_slogan = ''Don't call Us a Phone Company; Don't call it a Phone'' | | |||
| predecessor = | |||
products = ] ], offering ] and ] | | |||
| successor = | |||
homepage = | |||
| foundation = {{Start date and age|2005|01|26}} | |||
| founder = | |||
| location_city = ] | |||
| location_country = United States | |||
| locations = 5 stores (2006) | |||
| area_served = Continental United States | |||
| key_people = Wonhee Sull jformer ]) <br/> ] (former ]) | |||
| industry = Wireless communications | |||
| products = ] <br/> ] <br/> Helio Hero | |||
| services = Helio All-In Membership <br/> Helio A-la-Carte Membership | |||
| revenue = | |||
| operating_income = | |||
| net_income = | |||
| assets = | |||
| equity = | |||
| owner = ] | |||
| num_employees = | |||
| parent = | |||
| divisions = | |||
| subsid = | |||
| homepage = {{URL|helio.com}}<br/>{{URL|sk-earthlink.com}}<br/>{{URL|heliosocial.com}} | |||
| footnotes = <ref name=skearthlink2005>{{cite press release |title=SK Telecom and EarthLink Announce Joint Venture to Form National Wireless Provider |publisher=PR Newswire Association LLC |date=2005-01-26 |url=http://www.prnewswire.com/news-releases/sk-telecom-and-earthlink-announce-joint-venture-to-form-national-wireless-provider-54111782.html |accessdate=2012-04-20 |quote=The new entity, to be called SK-EarthLink (www.SK-EarthLink.com)...}}</ref><ref name=business2.0>{{cite web |archiveurl=https://web.archive.org/web/20071011105757/http://www.helio.com/livefiles/1/1146002417827/1146002417844/sk_020105.pdf |format=PDF |url=http://www.business2.com/b2/web/articles/0,17863,1023279,00.html |title=Sky Daton Goes Cellular |author=Maier, Matthew |date=2005-02-01 |work=Business2.0 |publisher=Time, Inc. |accessdate=2012-04-19 |archivedate=2007-10-11 }}</ref> | |||
| intl = | |||
}} | }} | ||
'''Helio''' (often stylized as '''HΞLIO''') was a ] wireless carrier launched on ], ]. It was founded by ] founder ]. It is a joint venture between ] (a ] ] mobile telecom) and ]. Helio has 170,000 subscribers.<ref>{{cite web |url=http://virginmobileusa.mediaroom.com/index.php?s=43&item=163</ref> | |||
'''Helio, Inc.''' (stylized as '''HΞLIO''') is a former, ] (MVNO) using ]'s network that offered wireless voice, messaging and data products and services to customers in the continental United States beginning on May 2, 2006. Originally a 50/50 joint venture founded in January, 2005 between South Korean wireless operator ] and American Internet services provider ], early losses caused EarthLink to stop providing additional funding in fall of 2007. SK Telecom provided the required additional funding to sustain Helio, which was re-organized as '''Helio LLC''', and by January 2008, SK Telecom had assumed an increased ownership stake and with it, operational control of the joint venture. Although SK Telecom publicly pledged to support Helio, SK Telecom entered into talks to sell the company to rival MVNO ]. Virgin Mobile USA closed the acquisition of Helio and its 170,000 subscribers on August 22, 2008. Virgin Mobile USA exited the postpaid wireless business and retired the Helio brand on May 25, 2010. | |||
On ], ], EarthLink and SK Telecom announced to the media that they had entered into agreement to launch a new US mobile provider. This provider would operate as a ] and would lease network capacity from ]. The premise of this new company would be to grow SK Telecom's customer base from its already saturated home market of ] to the ] wireless market. SK Telecom has been under increasing pressure over the last few years due to its flat growth in its existing markets.<ref></ref> Helio, as it was to be called, attempted to market itself to the younger demographic, trying to tout itself using the latest in cutting-edge handset technology. They planned to avoid taking on the major US wireless carriers directly, and instead they intend to carve out a niche for themselves with technology-savvy consumers.<ref></ref> EarthLink and SK Telecom agreed to provide an initial round of financing totaling $440 million US dollars, with each of the two owning 50% of the new company.<ref>http://helio.com/headlines/sk_sj_merc.pdf</ref> | |||
The Helio brand was resurrected by Ubi Telecom in July 2015. Helio's new $29 per month rate plan offered unlimited talk, text and data but at capped data speeds of 128 kilobits per second. Since then, Helio has appeared to have gone out of business with its website being no longer accessible.<ref name="theverge.com">{{Cite web|url=https://www.theverge.com/2015/7/6/8903587/helio-mobile-network-sprint-comeback|title=Virtual mobile network Helio is back from the dead|date=6 July 2015}}</ref> | |||
In addition to leasing capacity from Sprint Nextel, in the event that Sprint Nextel isn't available, Helio devices will go into "roaming" mode to operate on ], ] and ], however, data services are not available while roaming. Roaming is indicated by an '''R''' to the left of the signal strength indicator. | |||
==History== | |||
==Milestones that led to Helio's collapse== | |||
===Foundation=== | |||
1. Helio's initial and expensive volley of marketing was extremely vague and failed to tell potential customers why they should buy a Helio and what differentiates them from their competition.<ref>http://www.thememagazine.com/index.php?option=com_jd-wp&Itemid=67&p=1281</ref><ref>http://www.psfk.com/2007/10/ever-empty-helio-store-says-it-all.html</ref> | |||
'''SK-EarthLink, Inc.''', the joint venture that would become Helio, Inc., was established on January 26, 2005. On October 26, 2005, EarthLink and SK Telecom announced that they had entered into an agreement to change the name of their joint venture from SK-EarthLink, Inc. to '''Helio, Inc'''. and provide a high-end wireless communications service targeting younger, bigger-spending customers.<ref name=CNET_2005>{{cite web |url=http://news.cnet.com/EarthLink-mobile-venture-renamed-Helio/2100-1039_3-5914186.html |title=EarthLink mobile venture renamed 'Helio' |author=Borland, John |date=2005-10-25 |work=CNET |publisher=CBS Interactive |accessdate=2012-04-19}}</ref> Helio provided service as a ], primarily via the ] CDMA network. The joint venture partners described their choice of the name "Helio" by referencing Copernicus' heliocentric view of the universe, saying that wireless communications is the center of the universe for Helio's target customers.<ref name=Helio_2005>{{cite press release |url=http://www.mail-archive.com/medianews@twiar.org/msg05759.html |publisher=Business Wire |title=Say Hello To HELIO; SK-EarthLink Changes Its Name and Unveils Brand For Its Breakthrough Mobile Offering Launching Spring 2006; HELIO To Leverage SK Telecom Innovation In New Service |date=2005-10-26 |accessdate=2012-04-20}}</ref> | |||
2. Outsourced Customer Service - Helio was consistently ranked among the worst in the industry in customer service and accurate billing.<ref>http://findarticles.com/p/articles/mi_m0EIN/is_2006_Oct_5/ai_n27046342</ref><ref>http://www.ripoffreport.com/reports/0/313/RipOff0313383.htm</ref><ref>http://www.phonedog.com/cell-phone-research/blog/the-worst-helio-customer-service-needs-big-time-help.aspx</ref> | |||
===Strategy=== | |||
3. Helio didn't produce an exclusive phone until 2 years after the company incorporated. When the Ocean was finally released it was greatly overshadowed by Apple's ] superior marketing and GUI even though the iPhone was functionally an inferior product.<ref>http://www.infosyncworld.com/reviews/n/8167.html</ref> This one's a little difficult to reference since the Ocean wasn't actually a contender with the iPhone selling more phones in a week then Helio has in their 4+ year history (4mil to date for iPhone).<ref>http://arstechnica.com/news.ars/post/20080123-the-truth-about-the-iphones-sales-numbers.html</ref> | |||
SK Telecom hoped to grow its customer base in the United States due to stagnant growth in its saturated home market of ]. Helio management believed that Helio could avoid taking on the major US wireless carriers directly by targeting price-insensitive, technology-savvy consumers.<ref name=CNET_2005/><ref name=WSJ_2006>{{cite news |title=Helio Set to Open Cellphone Stores For the Tech Savvy |author=Young, Shawn |date=2006-08-14 |work=Wall Street Journal |publisher=Dow Jones & Company, Inc }}</ref> EarthLink and SK Telecom agreed to provide an initial round of financing totaling $440 million, with each partner owning 50% of the joint venture.<ref name=Helio_2005/> | |||
4. Helio's in-house phone software (Java) was very buggy<ref>http://www.livingroom.org.au/cameraphone/archives/helio_kickflip.php</ref> and frequently crashed or locked up<ref>http://www.youtube.com/watch?v=xgPL-UzXYg4</ref>. Since Helio didn't have the ability push software updates out to customers Helio was forced to replace their customers' phones when they became nonfunctional at great expense to the company. | |||
===Service launch=== | |||
5. Customer Data - Helio's nonchalant attitude toward the security of their customers' data resulted in numerous security breaches. In February 2008 Helio was forced by California law (Civil Code ) to send a to their customer base notifying them their personal data had been stolen by hackers in a security incident. The data stolen included their name (first/last), Date of Birth, Social Security Number, Address, Phone Number, and Credit Card Number. Only a few months before the most serious breach, in November 2008, Helio's Credit Card Processor (Chase) Payment Tech demanded a more intrusive ] audit by a third party (]) to assess additional financial penalties against Helio. The purpose of this audit was to assess more accurately Helio's current level of noncompliance with industry standards after 2 years of found in internet launched scans. On 11/14/2007, Ron Marquez and the Systems Operations Manager and Sr. Data Center Managers of Helio (with full knowledge of Hoa Le Director of Systems Operations) to the auditors and cover up grave security holes and policies including publicly accessible and unpatched ]s that included all customer billing and personal data. | |||
When Helio first began offering service via a soft launch in May 2006. Initially, most of the promotion was done by word of mouth and at promotional events held across the country. On July 13, 2006, Helio began running TV commercials with the slogan, "Don't Call Us a Phone Company; Don't Call it a Phone." Helio also began advertising on ]s, in the print media, specifically in magazines that serve the 18-32 demographic, and on MySpace. Helio opened five corporate flagship stores located in ], ], ], ], and in ], ] and ], ].<ref name=Forbes>{{cite web |url=https://www.forbes.com/2006/05/02/helio-wireless-0502markets02.html |title=Helio Heats Up Handheld Lifestyle |author=DuBose Tomassi, Kate |date=2006-05-02 |work=Forbes.com |accessdate=2012-04-20}}</ref> | |||
==Devices== | |||
Since Helio leases network capacity primarily from Sprint Nextel, Helio devices operate using the CDMA ] standard. This is also the standard used by ] in the South Korean market. As such, almost all of Helio's handsets are rebranded versions of Samsung phones long since on the South Korean market. At launch, Helio offered two models called the ] and ]. These were replaced by the ] slider, which was added to the line-up in November 2006, and the Heat slider, which was added in March 2007. In May 2007, Helio introduced the Ocean, its flagship dual-slider. In August 2007, Helio launched Fin, an ultra-thin folder with a magnesium body. In December 2007, the Mysto slider saw a limited release to the Korean American market, which was followed up by a general market launch in January 2008. | |||
=== |
===Marketing=== | ||
On February 16, 2006, and in conjunction with its initial handset lineup, Helio announced it had partnered with ]. Helio created a custom portal for users to interface with the social networking site. Helio was one of the first wireless communications providers in the United States to use social networking as a major promotional strategy. Cingular, AT&T, Sprint and other competitors did not follow suit until months later.<ref>{{cite news|publisher=San Francisco Chronicle |title=Cross MySpace, cell phones - mobile social networking taking off|author=Kim, Ryan|date=October 22, 2007}}</ref><ref>{{cite news |publisher=CNN |title=MySpace unwired.News Corp.'s youth-oriented Web portal extends its influence into the wireless world|author=Maier, Matthew|date=February 16, 2006|url=https://money.cnn.com/2006/02/16/technology/business2_myspace0216/?cnn=yes}}</ref> | |||
The Drift, Fin, Mysto, and Heat were all Samsung phones already available on the South Korean market which Helio rebranded to flesh out its lineup. All had virtually identical functionality with major differences being only cosmetic. i.e. flip vs. slider etc. | |||
=== |
===Early financial losses=== | ||
{{main|Helio Ocean}} | |||
The Ocean is a dual-slider cell phone (manufactured by Pantech) <ref>http://www.helio.com/#devices_ocean</ref>, combining a traditional numeric keypad and a separate full QWERTY keyboard in a single handset. Designed primarily as a social networking tool <ref></ref>, the Ocean merges instant messages, text messages, picture messages and email services from all of the major portals in one phone but none are integrated with each other. The Ocean also delivers MySpace Mobile on Helio with a new user interface, music downloads, video-on-demand, a 2 megapixel camera, an HTML browser, GPS-enabled Google Maps, Garmin Navigation, Buddy Beacon and supports Mail for Microsoft Exchange. The Helio Ocean comes with 200MB of internal memory and a microSD memory card slot (expandable up to 2GB). The Ocean became publicly available on ], ]. The Ocean was prohibitively priced ($298 with a 2 year plan) and extremely bulky compared to most modern phones of its time and generated little widespread interest. What little interest it had generated was completely overshadowed by the launch of the iPhone a couple months later. | |||
Substantial startup costs for Helio resulted in millions of dollars of losses per month. These losses caused EarthLink to post a loss for its first quarter of 2007.<ref>{{cite news |publisher=The Atlanta Journal-Constitution |title=Earthlink posts $30 million loss for first quarter|date=April 27, 2007|author=Leith, Scott}}</ref> EarthLink and SK Telecom both upped their initial investments after it became clear that more money would be required to establish the new Helio brand. After this second round of financing ran out, EarthLink declined to provide further money to support Helio, stating that the investments in Helio were draining resources away from the company's core business. | |||
==Past phones== | |||
===Kickflip=== | |||
The ], produced by ], was one of Helio's two launch devices and was marketed heavily to MySpace users. The Kickflip is a swiveling cell phone, white in color and with a flat (screen-only) front that drew comparisons to the styling of the ]. Some of the features included 2 Megapixel camera, 90 minutes of video recording, side buttons, QVGA screen, and 8 day stand by/3 hour talk time battery life. Even though the Kickflip was possibly Helio's most popular phone at the time, the model was discontinued, as Helio could not fulfill new orders due to the bankruptcy filing of VK Mobile and constant problems with bugs and the phones crashing.<ref></ref> | |||
<!-- Unsourced image removed: ] --> | |||
===Change of ownership and control=== | |||
===Hero=== | |||
The Helio ] was also one of Helio's two launch devices. The Hero was marketed as the phone for music and video game aficionados and was extremely bulky compared to other phones on the market at the time. It was a slider, available only in black. The Hero included 2 Megapixel camera with opening and closing lens cover, QVGA screen, multimedia co-processor chip for enhanced video and sound, duplex stereo speakers, and 8 day standby/3 hours talk time battery life. The Hero was discontinued in February 2007. | |||
On September 21, 2007, EarthLink announced that SK Telecom would be increasing SK Telecom's investment in Helio by $270 million and they would be adjusting ownership positions in the company accordingly and giving operational control to SK Telecom.<ref>{{cite news |publisher=Yonhap News Agency|title=SK Telecom to raise US$100 mln in capital for U.S. operation|date=July 3, 2007}}</ref><ref>{{cite news|publisher=Telecom Paper|title=SK Telecom, Earthlink up investments in Helio|date=July 3, 2007}}</ref><ref>{{cite news|publisher=Telecomworld Wire|author=Earthlink|title=EarthLink confirms SK Telecom's investment in Helio|date=September 27, 2007}}</ref> In January 2008, CEO Sky Dayton was replaced by Dr. Won Hee Sull, a former executive of SK Telecom. Sky was named non-executive chairman of the board. In a press release announcing the management changes, SK Telecom reaffirmed their commitment to Helio.<ref>{{cite news|title=Helio CEO Sky Dayton Leaves Post|author=Gonsalves, Antone|publisher=Information Week|date=January 29, 2008}}</ref> | |||
===Hybrid=== | |||
The Hybrid was a ] which provided wireless internet access via Helio's 3G technology and Wi-Fi hot spots. The Hybrid is a rebranded Sierra ]. Helio quietly discontinued sales and service for the Hybrid soon after its launch due to lack of interest. | |||
===Acquisition by Virgin Mobile USA=== | |||
==MySpace partnership== | |||
On ], ] and in conjunction with its initial handset lineup, Helio announced it had partnered with ]. Helio created a custom but sometimes unstable portal for users to interface with the social networking site. Cingular, AT&T, Sprint and others followed suit months later. | |||
In May 2008, rumors arose that Helio parent SK Telecom was in talks with ] over a possible merger.<ref>{{cite web|last=Ali |first=Rafat |title=Virgin Mobile USA In Merger Talks With Helio; Other Options Still Being Considered |publisher=mocoNews.net |date=2008-05-08 |url=http://www.moconews.net/entry/419-virgin-mobile-usa-in-merger-talks-with-helio-other-options-still-being-/ |accessdate=2008-05-29 |url-status=dead |archiveurl=https://web.archive.org/web/20080612151951/http://www.moconews.net/entry/419-virgin-mobile-usa-in-merger-talks-with-helio-other-options-still-being-/ |archivedate=2008-06-12 }}</ref> SK Telecom denied these rumors, but Virgin Mobile USA divulged that the two, in fact, were having preliminary discussions.<ref>{{cite web|title=SK Telecom Denies Virgin Mobile Rumors |publisher=Business Week |date=2008-05-14 |url=http://www.businessweek.com/globalbiz/content/may2008/gb20080514_341566.htm?campaign_id=rss_daily |accessdate=2008-05-29 |url-status=dead |archiveurl=https://web.archive.org/web/20090217082011/http://www.businessweek.com/globalbiz/content/may2008/gb20080514_341566.htm?campaign_id=rss_daily |archivedate=2009-02-17 }}</ref><ref>{{cite web|last=Duryee |first=Tricia |title=Virgin Mobile USA Confirms Early Talks With SK Telecom |publisher=mocoNews.net |date=2008-05-14 |url=http://www.moconews.net/entry/419-virgin-mobile-usa-confirms-early-talks-with-sk-telecom/ |accessdate=2008-05-29 |url-status=dead |archiveurl=https://web.archive.org/web/20080515131058/http://www.moconews.net/entry/419-virgin-mobile-usa-confirms-early-talks-with-sk-telecom/ |archivedate=2008-05-15 }}</ref> On June 27, 2008, Virgin Mobile USA announced that it would pay $39 million in stock for Helio after SK Telecom promised to invest immediately $25 million in cash in Virgin Mobile USA.<ref>{{cite news|publisher=Wall Street Journal|author=Lavalee, Andrew|date=June 28, 2008|title=Virgin Mobile to Acquire Helio}}</ref><ref>{{cite news|publisher=Business Week |title=SK Telecom Eyes Virgin Mobile USA |url=http://www.businessweek.com/technology/content/may2008/tc20080516_291495.htm |date=May 16, 2008 |author=Kharif, Olga |url-status=dead |archiveurl=https://web.archive.org/web/20081010030122/http://www.businessweek.com/technology/content/may2008/tc20080516_291495.htm |archivedate=October 10, 2008 }}</ref> Virgin Mobile USA completed its acquisition of Helio, Inc. on August 22, 2008. Helio had approximately 170,000 subscribers at time of the acquisition.<ref name=vmusa2008>{{cite press release |title=Virgin Mobile USA Closes Acquisition of Helio |publisher=Virgin Mobile USA L.P. |date=2008-08-22 |url=http://espanol.virginmobileusa.com/sdvirginmobileusa/dmarketwire/easyir/customrel.do?easyirid=F4ABAEBA3A27ECD9&version=live&prid=467772&releasejsp=custom_124 |accessdate=2012-04-20 |quote=Aug. 22 -- Virgin Mobile USA, Inc. (NYSE: VM), a leading national provider of pay-as-you-go wireless services, today announced that it has completed its acquisition of Helio, a joint venture between SK Telecom and EarthLink, Inc.... }}</ref> On September 9, 2008, Virgin Mobile USA announced a new brand, "Helio by Virgin Mobile", and a new marketing slogan "Plan To Have It All". Virgin Mobile USA also announced a change of monthly plans and their first integrated phone, the PCD "Shuttle". | |||
==Soft launch== | |||
When Helio first opened its doors for business in May 2006, they opted for a soft launch. Most of the promotion was done by word of mouth and promotional events across the country, instead of using conventional advertising since Helio had yet to produce a product.<ref></ref> | |||
===Helio brand defunct=== | |||
==Hard launch== | |||
On ], ], Helio began running TV commercials with the slogan, "Don't Call Us a Phone Company; Don't Call it a Phone." Alongside the television commercials, Helio also began advertising on ]s and in the print media, specifically in magazines that serve the 18-32 demographic, and very heavily on MySpace. Unfortunately, Helio's advertizing missed its mark and only served to confuse the public as to what Helio was rather then inform the public of what differentiated Helio from other Carriers and MVNO's. Helio opened five corporate flagship stores, with locations in ]-Colorado, ]-New York, and in ], ] and ]-California most of which were shuttered within a year of their launch. All remote corporate offices were shuttered within 2-6 months of their opening around this time as well leaving only the Westwood and Pasadena offices. Unable to generate enough revenue via the stores Helio started concentrating, unsuccessfully, on increasing distribution through outsourced mall kiosks. After having their doors open for over four years SK Telecom was unable to break into the US Market wielding a money hammer worth over half a billion dollars. | |||
Sprint Nextel announced in March 2010 that Virgin Mobile USA would stop providing service to its Helio post-paid customers. Sprint Nextel offered Helio customers incentives to switch to Sprint branded service and were told that if they did nothing their service would be disconnected on May 25, 2010.<ref name=cnet2008>{{cite web |url=http://www.cnet.com/8301-17918_1-10462442-85.html |title=Virgin Mobile will end its postpaid plans starting by May 25 |author=Lee, Nicole |date=2010-03-02 |work=CNET |publisher=CBS Interactive |accessdate=2012-04-20}}</ref> | |||
==Company progression== | |||
At the end of December 2006, Helio announced it had 70,000 customers with an average monthly revenue per user (ARPU) of nearly $100. An estimated 25 percent of those revenues come from data services (Well above the industry average of about 11 percent).{{Fact|date=August 2007}} On ], ] ] announced that SK Telecom would be increasing their investment in Helio by $270 million and adjusting ownership positions in the company accordingly, effectively giving operational control to SK Telecom. | |||
===Helio comeback=== | |||
In May 2008, rumors arose that Helio parent SK Telecom was in talks with ] over a possible merger.<ref>{{cite web | last = Ali | first = Rafat | authorlink = Rafat Ali | title = Virgin Mobile USA In Merger Talks With Helio; Other Options Still Being Considered | publisher = mocoNews.net | date = 2008-05-08 | url = http://www.moconews.net/entry/419-virgin-mobile-usa-in-merger-talks-with-helio-other-options-still-being-/ | accessdate = 2008-05-29}}</ref> SK Telecom denied these rumors <ref>{{cite web | title = SK Telecom Denies Virgin Mobile Rumors | publisher = Business Week | date = 2008-05-14 | url = http://www.businessweek.com/globalbiz/content/may2008/gb20080514_341566.htm?campaign_id=rss_daily | accessdate = 2008-05-29}}</ref>, but Virgin divulged that the two, in fact, were having preliminary discussions. <ref>{{cite web | last = Duryee | first = Tricia | title = Virgin Mobile USA Confirms Early Talks With SK Telecom | publisher = mocoNews.net | date = 2008-05-14 | url = http://www.moconews.net/entry/419-virgin-mobile-usa-confirms-early-talks-with-sk-telecom/ | accessdate = 2008-05-29}}</ref> On ], ], Virgin Mobile announced that it would pay $39 million in stock for Helio after SK Telecom promised to invest $50 million in cash immediately in Virgin. In a last ditch effort to gain a foothold in the US market SK Telecom is effectively paying Virgin Mobile to purchase Helio while granting SK Telecom a minority stake in Virgin Mobile. All Helio's current employees are expected to be laid of by December 2008 at the latest. <ref>{{cite web | url=http://www.chicagotribune.com/technology/sns-ap-virgin-mobile-helio,0,5262840.story | title="Virgin Mobile to buy Helio for $39M" | author=Svensson, Peter | publisher=Chicago Tribune | date=2008-06-27| accessdate=2008-06-27}}</ref> | |||
The Helio brand was resurrected by Ubi Telecom in July 2015. Helio's $29 per month rate plan offers unlimited talk, text and data but at capped data speeds of 128 kbit/s. <br> On the hardware front, you can either sign up with your own phone (limited to devices compatible with Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless), or buy one from their rather outdated selection that includes a Galaxy S4 for $299, Galaxy S III for $249, Galaxy Epic 4G for $49, or a ] flip phone for $89.<ref name="theverge.com"/> | |||
==External links== | |||
* | |||
* | |||
* | |||
==Products and services== | |||
===Resources=== | |||
* PC Mag - Helio Introduces Sidekick Killer <- kind of ironic in retrospect, helio sure took out the sidekick... | |||
===Plans=== | |||
* PC Mag - Hands-On With the Helio Ocean | |||
* Earthlink Press Release | |||
At launch in 2006, Helio offered three "Helio All-In Membership" monthly plans of unlimited data and SMS messaging combined with 500 voice minutes for $65, 1,000 voice minutes for $85, 1,500 voice minutes for $100 or 2,500 voice minutes for $135.<ref name=Forbes/> | |||
Helio also offered "Helio A-la-Carte Membership" monthly plans that offered 500 voice minutes for $40, 1000 voice minutes for $60 or 1,500 voice minutes for $80 combined with pay-as-you-go $.02 per kilobyte data and $.10 per domestic incoming or outgoing text message.<ref name=helio2006>{{cite web |url=http://www.helio.com/page?p=join |archiveurl=https://web.archive.org/web/20061028082447/http://www.helio.com/page?p=join |title=Join Helio |year=2006 |archivedate=2006-10-28 |work=helio.com |publisher=Helio, Inc |accessdate=2012-04-20}}</ref> | |||
<br> For New Helio you can either sign up with your own phone (limited to devices compatible with compatible with Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless), or buy one from their rather outdated selection that includes a Galaxy S4 for $299, Galaxy S III for $249, Galaxy Epic 4G for $49, or a Kyocera Kona flip phone for $89. | |||
===Handsets=== | |||
At launch, Helio offered two models, the ] and Helio Hero.<ref>{{cite news|publisher=ZDNet News|title=Helio kicks off cell phone service|author=Reardon, Marguerite|date=May 2, 2006}}</ref> These handsets were replaced by the ] slider in November 2006 and the ] slider in March 2007.<ref>{{cite news|publisher=NewsFactor Network|title=Helio's New Phone: On Target or Drifting?|author=Garrett, David|date=November 9, 2006}}</ref><ref>{{cite news|publisher=Infosync World|title=Helio Heat makes its debut|author=Hooker, Jennifer|date=March 1, 2007}}</ref> In May 2007, Helio introduced the ], its flagship dual-slider. In August 2007, Helio launched the Fin, an ultra-thin folder with a magnesium body.<ref>{{cite news|publisher=Wired Magazine|title=Helio Fin|author=Shamoon, Evan|date=October 23, 2007}}</ref><ref>{{cite news|publisher=Business Wire|title=Helio Fin Packs Advanced 3G Services Into Thinnest Folder Currently Available in the U.S.|author=Helio|date=August 15, 2007}}</ref> In December 2007, the Mysto slider saw a limited release to the Korean American market, which was followed up by a general market launch in January 2008.<ref>{{cite news|publisher=PhoneMag|title=Helio Mysto available now|author=Davies, Chris|date=January 16, 2008}}</ref><ref>{{cite news|publisher=Business Week|title=A Holla to Helio's Hip Little Phone|author=Kharif, Olga|date=March 13, 2008}}</ref> On February 12, 2009, Helio launched sales of the Ocean 2 by Virgin Mobile, a device much like the original Ocean but sleeker and having new features.<ref>{{Cite web |url=http://virginmobileusa.marketwire.com/easyir/pkit.do?easyirid=13135DE328B72AB2 |title=Virgin Mobile USA - Welcome |access-date=2009-02-26 |archive-url=https://web.archive.org/web/20090219055726/http://virginmobileusa.marketwire.com/easyir/pkit.do?easyirid=13135DE328B72AB2 |archive-date=2009-02-19 |url-status=dead }}</ref> | |||
Helio was criticized for not having the latest phones its marketing promised. Almost all of Helio's handsets were re-branded versions of older Samsung phones that had been offered in South Korea for some time and were not cutting edge at the time of their offering in the United States. Helio handsets' features and specifications were on par with, not better than, offerings from rival American wireless providers.<ref>{{Cite web |url=http://www.611connect.com/content/what-deal-helio |title=What is the deal with Helio? - 611Connect Blog | Cell Phone Reviews, New Cell Phones, Cell Phone How to |access-date=2009-05-18 |archive-url=https://web.archive.org/web/20090502053654/http://www.611connect.com/content/what-deal-helio |archive-date=2009-05-02 |url-status=dead }}</ref> Helios was awarded US Patents for user interface design directed by ].<ref name=duarte>{{cite patent |country=US |number=D580949S |status=patent |title=User interface for a mobile electronic device |gdate=2008-11-08 |fdate=2006-09-12 |invent1=Duarte, Mathias |assign1=Helio, LLC}}</ref> | |||
===Broadband Internet access=== | |||
In October 2006, Helio began offering a combined 3G and Wi-Fi broadband Internet access service for personal computers. Customers accessed the Internet from their PC via Helio's 3G wireless service, 50,000 commercial Wi-Fi hotspots operated by Boingo or free Wi-Fi hotspots. The service required use of the Helio Hybrid ], a re-branded ] AirCard. The Helio Hybrid PC card was offered at no cost when customers subscribed to a two-year term agreement costing $85 per month. In contrast, consumers at the time could choose similar service sold under the Sprint brand for $60 per month, albeit without the Wi-Fi roaming subscription which was offered by Helio.<ref name=reardon>{{cite web |url=http://news.cnet.com/Helio-introduces-hybrid-wireless-service/2100-1039_3-6122694.html |last=Reardon |first=Marguerite |date=2006-10-04 |work=CNET |title=Helio introduces hybrid wireless service |publisher=CBS Interactive |accessdate=2012-04-20}}</ref> | |||
==References== | ==References== | ||
{{reflist|2}} | {{reflist|2}} | ||
==External links== | |||
{{US mobile phone companies}} | |||
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Latest revision as of 13:12, 9 November 2024
Defunct American mobile virtual network operatorCompany type | Joint venture |
---|---|
Industry | Wireless communications |
Founded | January 26, 2005; 19 years ago (2005-01-26) |
Defunct | May 25, 2010; 14 years ago (2010-05-25) |
Fate | Acquired by Ubi Telecom |
Headquarters | Los Angeles, California, United States |
Number of locations | 5 stores (2006) |
Area served | Continental United States |
Key people | Wonhee Sull jformer CEO) Sky Dayton (former chairman) |
Products | Helio Ocean Helio Kickflip Helio Hero |
Services | Helio All-In Membership Helio A-la-Carte Membership |
Owner | Ubi Telecom |
Website | helio sk-earthlink heliosocial |
Footnotes / references |
Helio, Inc. (stylized as HΞLIO) is a former, mobile virtual network operator (MVNO) using Sprint's network that offered wireless voice, messaging and data products and services to customers in the continental United States beginning on May 2, 2006. Originally a 50/50 joint venture founded in January, 2005 between South Korean wireless operator SK Telecom and American Internet services provider EarthLink, early losses caused EarthLink to stop providing additional funding in fall of 2007. SK Telecom provided the required additional funding to sustain Helio, which was re-organized as Helio LLC, and by January 2008, SK Telecom had assumed an increased ownership stake and with it, operational control of the joint venture. Although SK Telecom publicly pledged to support Helio, SK Telecom entered into talks to sell the company to rival MVNO Virgin Mobile USA. Virgin Mobile USA closed the acquisition of Helio and its 170,000 subscribers on August 22, 2008. Virgin Mobile USA exited the postpaid wireless business and retired the Helio brand on May 25, 2010.
The Helio brand was resurrected by Ubi Telecom in July 2015. Helio's new $29 per month rate plan offered unlimited talk, text and data but at capped data speeds of 128 kilobits per second. Since then, Helio has appeared to have gone out of business with its website being no longer accessible.
History
Foundation
SK-EarthLink, Inc., the joint venture that would become Helio, Inc., was established on January 26, 2005. On October 26, 2005, EarthLink and SK Telecom announced that they had entered into an agreement to change the name of their joint venture from SK-EarthLink, Inc. to Helio, Inc. and provide a high-end wireless communications service targeting younger, bigger-spending customers. Helio provided service as a mobile virtual network operator, primarily via the Sprint Nextel CDMA network. The joint venture partners described their choice of the name "Helio" by referencing Copernicus' heliocentric view of the universe, saying that wireless communications is the center of the universe for Helio's target customers.
Strategy
SK Telecom hoped to grow its customer base in the United States due to stagnant growth in its saturated home market of South Korea. Helio management believed that Helio could avoid taking on the major US wireless carriers directly by targeting price-insensitive, technology-savvy consumers. EarthLink and SK Telecom agreed to provide an initial round of financing totaling $440 million, with each partner owning 50% of the joint venture.
Service launch
When Helio first began offering service via a soft launch in May 2006. Initially, most of the promotion was done by word of mouth and at promotional events held across the country. On July 13, 2006, Helio began running TV commercials with the slogan, "Don't Call Us a Phone Company; Don't Call it a Phone." Helio also began advertising on billboards, in the print media, specifically in magazines that serve the 18-32 demographic, and on MySpace. Helio opened five corporate flagship stores located in Cherry Creek, Colorado, New York, New York, and in Palo Alto, San Diego and Santa Monica, California.
Marketing
On February 16, 2006, and in conjunction with its initial handset lineup, Helio announced it had partnered with MySpace. Helio created a custom portal for users to interface with the social networking site. Helio was one of the first wireless communications providers in the United States to use social networking as a major promotional strategy. Cingular, AT&T, Sprint and other competitors did not follow suit until months later.
Early financial losses
Substantial startup costs for Helio resulted in millions of dollars of losses per month. These losses caused EarthLink to post a loss for its first quarter of 2007. EarthLink and SK Telecom both upped their initial investments after it became clear that more money would be required to establish the new Helio brand. After this second round of financing ran out, EarthLink declined to provide further money to support Helio, stating that the investments in Helio were draining resources away from the company's core business.
Change of ownership and control
On September 21, 2007, EarthLink announced that SK Telecom would be increasing SK Telecom's investment in Helio by $270 million and they would be adjusting ownership positions in the company accordingly and giving operational control to SK Telecom. In January 2008, CEO Sky Dayton was replaced by Dr. Won Hee Sull, a former executive of SK Telecom. Sky was named non-executive chairman of the board. In a press release announcing the management changes, SK Telecom reaffirmed their commitment to Helio.
Acquisition by Virgin Mobile USA
In May 2008, rumors arose that Helio parent SK Telecom was in talks with Virgin Mobile USA, Inc. over a possible merger. SK Telecom denied these rumors, but Virgin Mobile USA divulged that the two, in fact, were having preliminary discussions. On June 27, 2008, Virgin Mobile USA announced that it would pay $39 million in stock for Helio after SK Telecom promised to invest immediately $25 million in cash in Virgin Mobile USA. Virgin Mobile USA completed its acquisition of Helio, Inc. on August 22, 2008. Helio had approximately 170,000 subscribers at time of the acquisition. On September 9, 2008, Virgin Mobile USA announced a new brand, "Helio by Virgin Mobile", and a new marketing slogan "Plan To Have It All". Virgin Mobile USA also announced a change of monthly plans and their first integrated phone, the PCD "Shuttle".
Helio brand defunct
Sprint Nextel announced in March 2010 that Virgin Mobile USA would stop providing service to its Helio post-paid customers. Sprint Nextel offered Helio customers incentives to switch to Sprint branded service and were told that if they did nothing their service would be disconnected on May 25, 2010.
Helio comeback
The Helio brand was resurrected by Ubi Telecom in July 2015. Helio's $29 per month rate plan offers unlimited talk, text and data but at capped data speeds of 128 kbit/s.
On the hardware front, you can either sign up with your own phone (limited to devices compatible with Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless), or buy one from their rather outdated selection that includes a Galaxy S4 for $299, Galaxy S III for $249, Galaxy Epic 4G for $49, or a Kyocera Kona flip phone for $89.
Products and services
Plans
At launch in 2006, Helio offered three "Helio All-In Membership" monthly plans of unlimited data and SMS messaging combined with 500 voice minutes for $65, 1,000 voice minutes for $85, 1,500 voice minutes for $100 or 2,500 voice minutes for $135.
Helio also offered "Helio A-la-Carte Membership" monthly plans that offered 500 voice minutes for $40, 1000 voice minutes for $60 or 1,500 voice minutes for $80 combined with pay-as-you-go $.02 per kilobyte data and $.10 per domestic incoming or outgoing text message.
For New Helio you can either sign up with your own phone (limited to devices compatible with compatible with Sprint, Boost Mobile, Virgin Mobile and Assurance Wireless), or buy one from their rather outdated selection that includes a Galaxy S4 for $299, Galaxy S III for $249, Galaxy Epic 4G for $49, or a Kyocera Kona flip phone for $89.
Handsets
At launch, Helio offered two models, the Helio Kickflip and Helio Hero. These handsets were replaced by the Samsung Drift slider in November 2006 and the Samsung Heat slider in March 2007. In May 2007, Helio introduced the Ocean, its flagship dual-slider. In August 2007, Helio launched the Fin, an ultra-thin folder with a magnesium body. In December 2007, the Mysto slider saw a limited release to the Korean American market, which was followed up by a general market launch in January 2008. On February 12, 2009, Helio launched sales of the Ocean 2 by Virgin Mobile, a device much like the original Ocean but sleeker and having new features.
Helio was criticized for not having the latest phones its marketing promised. Almost all of Helio's handsets were re-branded versions of older Samsung phones that had been offered in South Korea for some time and were not cutting edge at the time of their offering in the United States. Helio handsets' features and specifications were on par with, not better than, offerings from rival American wireless providers. Helios was awarded US Patents for user interface design directed by Matias Duarte.
Broadband Internet access
In October 2006, Helio began offering a combined 3G and Wi-Fi broadband Internet access service for personal computers. Customers accessed the Internet from their PC via Helio's 3G wireless service, 50,000 commercial Wi-Fi hotspots operated by Boingo or free Wi-Fi hotspots. The service required use of the Helio Hybrid PC card, a re-branded Sierra Wireless AirCard. The Helio Hybrid PC card was offered at no cost when customers subscribed to a two-year term agreement costing $85 per month. In contrast, consumers at the time could choose similar service sold under the Sprint brand for $60 per month, albeit without the Wi-Fi roaming subscription which was offered by Helio.
References
- "SK Telecom and EarthLink Announce Joint Venture to Form National Wireless Provider" (Press release). PR Newswire Association LLC. 2005-01-26. Retrieved 2012-04-20.
The new entity, to be called SK-EarthLink (www.SK-EarthLink.com)...
- Maier, Matthew (2005-02-01). "Sky Daton Goes Cellular" (PDF). Business2.0. Time, Inc. Archived from the original (PDF) on 2007-10-11. Retrieved 2012-04-19.
- ^ "Virtual mobile network Helio is back from the dead". 6 July 2015.
- ^ Borland, John (2005-10-25). "EarthLink mobile venture renamed 'Helio'". CNET. CBS Interactive. Retrieved 2012-04-19.
- ^ "Say Hello To HELIO; SK-EarthLink Changes Its Name and Unveils Brand For Its Breakthrough Mobile Offering Launching Spring 2006; HELIO To Leverage SK Telecom Innovation In New Service" (Press release). Business Wire. 2005-10-26. Retrieved 2012-04-20.
- Young, Shawn (2006-08-14). "Helio Set to Open Cellphone Stores For the Tech Savvy". Wall Street Journal. Dow Jones & Company, Inc.
- ^ DuBose Tomassi, Kate (2006-05-02). "Helio Heats Up Handheld Lifestyle". Forbes.com. Retrieved 2012-04-20.
- Kim, Ryan (October 22, 2007). "Cross MySpace, cell phones - mobile social networking taking off". San Francisco Chronicle.
- Maier, Matthew (February 16, 2006). "MySpace unwired.News Corp.'s youth-oriented Web portal extends its influence into the wireless world". CNN.
- Leith, Scott (April 27, 2007). "Earthlink posts $30 million loss for first quarter". The Atlanta Journal-Constitution.
- "SK Telecom to raise US$100 mln in capital for U.S. operation". Yonhap News Agency. July 3, 2007.
- "SK Telecom, Earthlink up investments in Helio". Telecom Paper. July 3, 2007.
- Earthlink (September 27, 2007). "EarthLink confirms SK Telecom's investment in Helio". Telecomworld Wire.
- Gonsalves, Antone (January 29, 2008). "Helio CEO Sky Dayton Leaves Post". Information Week.
- Ali, Rafat (2008-05-08). "Virgin Mobile USA In Merger Talks With Helio; Other Options Still Being Considered". mocoNews.net. Archived from the original on 2008-06-12. Retrieved 2008-05-29.
- "SK Telecom Denies Virgin Mobile Rumors". Business Week. 2008-05-14. Archived from the original on 2009-02-17. Retrieved 2008-05-29.
- Duryee, Tricia (2008-05-14). "Virgin Mobile USA Confirms Early Talks With SK Telecom". mocoNews.net. Archived from the original on 2008-05-15. Retrieved 2008-05-29.
- Lavalee, Andrew (June 28, 2008). "Virgin Mobile to Acquire Helio". Wall Street Journal.
- Kharif, Olga (May 16, 2008). "SK Telecom Eyes Virgin Mobile USA". Business Week. Archived from the original on October 10, 2008.
- "Virgin Mobile USA Closes Acquisition of Helio" (Press release). Virgin Mobile USA L.P. 2008-08-22. Retrieved 2012-04-20.
Aug. 22 -- Virgin Mobile USA, Inc. (NYSE: VM), a leading national provider of pay-as-you-go wireless services, today announced that it has completed its acquisition of Helio, a joint venture between SK Telecom and EarthLink, Inc....
- Lee, Nicole (2010-03-02). "Virgin Mobile will end its postpaid plans starting by May 25". CNET. CBS Interactive. Retrieved 2012-04-20.
- "Join Helio". helio.com. Helio, Inc. 2006. Archived from the original on 2006-10-28. Retrieved 2012-04-20.
- Reardon, Marguerite (May 2, 2006). "Helio kicks off cell phone service". ZDNet News.
- Garrett, David (November 9, 2006). "Helio's New Phone: On Target or Drifting?". NewsFactor Network.
- Hooker, Jennifer (March 1, 2007). "Helio Heat makes its debut". Infosync World.
- Shamoon, Evan (October 23, 2007). "Helio Fin". Wired Magazine.
- Helio (August 15, 2007). "Helio Fin Packs Advanced 3G Services Into Thinnest Folder Currently Available in the U.S.". Business Wire.
- Davies, Chris (January 16, 2008). "Helio Mysto available now". PhoneMag.
- Kharif, Olga (March 13, 2008). "A Holla to Helio's Hip Little Phone". Business Week.
- "Virgin Mobile USA - Welcome". Archived from the original on 2009-02-19. Retrieved 2009-02-26.
- "What is the deal with Helio? - 611Connect Blog | Cell Phone Reviews, New Cell Phones, Cell Phone How to". Archived from the original on 2009-05-02. Retrieved 2009-05-18.
- US patent D580949S, Duarte, Mathias, "User interface for a mobile electronic device", issued 2008-11-08, assigned to Helio, LLC
- Reardon, Marguerite (2006-10-04). "Helio introduces hybrid wireless service". CNET. CBS Interactive. Retrieved 2012-04-20.
External links
Sprint Corporation | |
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Corporate directors | |
Former brands | |
Defunct brands |
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Digital distribution | |
Related topics |
- Helio (wireless carrier)
- Former joint ventures
- Telecommunications companies established in 2005
- Mobile virtual network operators
- Mobile phone companies of the United States
- Defunct mobile phone companies of the United States
- Defunct companies based in Greater Los Angeles
- EarthLink
- 2005 establishments in California
- American companies established in 2005