| Revision as of 07:48, 18 July 2008 editSgeine (talk | contribs)170 editsm ron marquez again trying to hide the fact that helio at his direction willfully exposed 170,000 to identity theft← Previous edit | Revision as of 08:28, 18 July 2008 edit undoSgeine (talk | contribs)170 editsm added link to Ron Marquez's linkedin profileNext edit → | ||
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| 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. | 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. | ||
| 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 2007, 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 then 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. | 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 2007, 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, and the Systems Operations Manager and Sr. Data Center Managers of Helio (with full knowledge of Hoa Le then 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. | ||
| ==Devices== | ==Devices== | ||
Revision as of 08:28, 18 July 2008
For other uses, see Helios (disambiguation).| Helio logo | |
| Company type | Joint venture between SK Telecom Inc. and EarthLink Inc. |
|---|---|
| Industry | Wireless Services |
| Founded | January 26, 2005 |
| Headquarters | Los Angeles, California |
| Key people | Dr. Wonhee Sull - CEO and Director Sky Dayton - Chairman of the Board (Ousted 02/08) Todd Tappin - CFO (Ousted 02/08) |
| Products | Sprint MVNO, offering CDMA and 1xEvDO |
| Website | Helio |
Helio (often stylized as HΞLIO) was a Mobile virtual network operator (MVNO) wireless carrier launched on May 2, 2006. It was founded by EarthLink founder Sky Dayton. It is a joint venture between SK Telecom (a South Korean CDMA mobile telecom) and EarthLink. Helio has 170,000 subscribers.
On January 26, 2005, 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 mobile virtual network operator and would lease network capacity from Sprint. The premise of this new company would be to grow SK Telecom's customer base from its already saturated home market of Korea to the US wireless market. SK Telecom has been under increasing pressure over the last few years due to its flat growth in its existing markets. 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. 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.
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 Alltel, Verizon Wireless and US Cellular, however, data services are not available while roaming. Roaming is indicated by an R to the left of the signal strength indicator.
Milestones that led to Helio's collapse
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.
2. Outsourced Customer Service - Helio was consistently ranked among the worst in the industry in customer service and accurate billing.
3. Helio didn't produce an exclusive phone until 2 years after the formation of the SK/EarthLink partnership. When the Ocean was finally released it was greatly overshadowed by Apple's iPhone superior marketing and GUI even though the iPhone was functionally an inferior product. 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).
4. Helio's in-house phone software (Java) was very buggy and frequently crashed or locked up. 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.
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 1798.82 & 1798.84) to send a mass mailing 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 2007, Helio's Credit Card Processor (Chase) Payment Tech demanded a more intrusive PCI DSS audit by a third party (IBM) 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 gross failures found in internet launched scans. On 11/14/2007, Ron Marquez and YongShik Seo the Systems Operations Manager and Sr. Data Center Managers of Helio (with full knowledge of Hoa Le then Director of Systems Operations) directed their employees to lie to the auditors and cover up grave security holes and policies including publicly accessible and unpatched Oracle Databases that included all customer billing and personal data.
Devices
Since Helio leases network capacity primarily from Sprint Nextel, Helio devices operate using the CDMA 1xEVDO standard. This is also the standard used by SK Telecom 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 Kickflip and Hero. These were replaced by the Drift 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.
Non-Exclusive Devices
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.
Ocean
Main article: Helio OceanThe Ocean is a dual-slider cell phone (manufactured by Pantech) , combining a traditional numeric keypad and a separate full QWERTY keyboard in a single handset. Designed primarily as a social networking tool , 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 May 11, 2007. 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.
Past phones
Kickflip
The Kickflip, produced by VK Mobile, 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 MacBook. 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.
Hero
The Helio Hero 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.
Hybrid
The Hybrid was a PC card which provided wireless internet access via Helio's 3G technology and Wi-Fi hot spots. The Hybrid is a rebranded Sierra AirCard. Helio quietly discontinued sales and service for the Hybrid soon after its launch due to lack of interest.
MySpace partnership
On February 16, 2006 and in conjunction with its initial handset lineup, Helio announced it had partnered with MySpace. 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.
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.
Hard launch
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." Alongside the television commercials, Helio also began advertising on billboards 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 Cherry Creek-Colorado, New York City-New York, and in Palo Alto, San Diego and Santa Monica-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.
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). On September 21, 2007 EarthLink 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.
In May 2008, rumors arose that Helio parent SK Telecom was in talks with Virgin Mobile USA over a possible merger. SK Telecom denied these rumors , but Virgin divulged that the two, in fact, were having preliminary discussions. On June 27, 2008, Virgin Mobile announced that it would pay $39 million in stock for Helio after SK Telecom promised to invest $25 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.
External links
Resources
- PC Mag - Helio Introduces Sidekick Killer <- kind of ironic in retrospect, helio sure took out the sidekick...
- PC Mag - Hands-On With the Helio Ocean
- Earthlink Press Release
References
- http://www.intomobile.com/2008/01/29/sky-dayton-goes-from-helios-ceo-to-chairman.html
- http://www.alleyinsider.com/2008/2/helio_reorg_cfo_three_execs_out
- http://valleywag.com/355690/cfo-and-three-vps-quit-helio-chairman-to-follow
- {{cite web |url=http://virginmobileusa.mediaroom.com/index.php?s=43&item=163
- Helio | Helio.com - Mobile Devices, Phones, and Wireless Service for You
- Free Preview - WSJ.com
- http://helio.com/headlines/sk_sj_merc.pdf
- http://www.thememagazine.com/index.php?option=com_jd-wp&Itemid=67&p=1281
- http://www.psfk.com/2007/10/ever-empty-helio-store-says-it-all.html
- http://findarticles.com/p/articles/mi_m0EIN/is_2006_Oct_5/ai_n27046342
- http://www.ripoffreport.com/reports/0/313/RipOff0313383.htm
- http://www.phonedog.com/cell-phone-research/blog/the-worst-helio-customer-service-needs-big-time-help.aspx
- http://www.infosyncworld.com/reviews/n/8167.html
- http://arstechnica.com/news.ars/post/20080123-the-truth-about-the-iphones-sales-numbers.html
- http://www.livingroom.org.au/cameraphone/archives/helio_kickflip.php
- http://www.youtube.com/watch?v=xgPL-UzXYg4
- http://www.helio.com/#devices_ocean
- Helio | Ocean Cell Phone Details: QWERTY Keyboard, Dual Slider, GPS, Bluetooth, MySpace Phone, Camera, Video, MP3 Player
- Cellphones: VK Mobile Files For Bankruptcy
- Helio Branches into Wireless Broadband
- Ali, Rafat (2008-05-08). "Virgin Mobile USA In Merger Talks With Helio; Other Options Still Being Considered". mocoNews.net. Retrieved 2008-05-29.
- "SK Telecom Denies Virgin Mobile Rumors". Business Week. 2008-05-14. Retrieved 2008-05-29.
- Duryee, Tricia (2008-05-14). "Virgin Mobile USA Confirms Early Talks With SK Telecom". mocoNews.net. Retrieved 2008-05-29.
- Svensson, Peter (2008-06-27). ""Virgin Mobile to buy Helio for $39M"". Chicago Tribune. Retrieved 2008-06-27.