Helio troubles continue; Kajeet changes focus
The MVNO space continues to be plagued by problems. Gizmodo is reporting that embattled MVNO Helio is on life support after merger negotiations between parent firm SK Telecom and Virgin Mobile USA stalled. According to reports, Virgin's interest hinges on either a bankruptcy declaration or massive liquidation. In the meantime, Helio is planning to begin closing its retail locations and kiosks. Even if an official merger fails, reports suggest that remaining Helio subscribers will be migrated to the Virgin Mobile network.
In related news, tween-focused pay-as-you-go MVNO kajeet has laid off some of its sales force. According to CEO Dan Neal, the MVNO laid off an unspecified number of sales reps as it shifts its focus to acquiring customers online. In an interview with FierceWireless, Neal said that the company made some "strategic adjustments" because it has learned that its best customers are Web-savvy. "You will see us have more emphasis online. That's where we can engage the best customers for us."
For more on the Helio rumors:
- read this Gizmodo article