Helio troubles continue; Kajeet changes focus

Sue Marek — Mon, 23 Jun 2008 12:20:15 -0400

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

Related stories:
2008 Predictions: Helio goes bust.
It's official: Virgin Mobile USA is in talks with Helio
Helio CEO Sky Dayton steps down

It's official: Virgin Mobile USA is in talks with Helio

Brian Dolan — Wed, 14 May 2008 11:21:25 -0400

After a week of speculation and rumors about a possible tie-up between Virgin Mobile USA and SK Telecom's MVNO Helio, Virgin Mobile has finally come forward and announced that the two are in preliminary talks. Virgin Mobile's brief statement characterizes the talks as "in early stages" and cautions that no transaction may result. The MVNO said it will have no further comment on the talks unless a definitive agreement takes place. Just yesterday, SK Telecom denied reports that it was in talks with Virgin Mobile USA about a possible tie-up.

If Virgin Mobile USA were to acquire Helio, it would mark the end of an era: Now that Mobile ESPN, Disney Mobile and Amp'd Mobile have ceased MVNO operations, Helio is the last big MVNO in operation from the content-heavy class of virtual operators.

For more:
- read Virgin Mobile's statement about Helio talks