Prepaid Reviews Blog » Helio

Is Helio store closing sign of sale?

Joe — Fri, 27 Jun 2008 12:31:52 +0000

We learn very on in school that correlation is not causation. So when Fierce Wireless sees a Helio store shut down, it doesn’t necessarily mean that the company is ready to go kaput. But considering what we’ve heard all week, it’s a strong possibility. The MVNO is said to be phasing out its retail operations, with the long-rumored merger with Virgin Mobile still just a rumor. According to the report by Fierce Wireless, Helio customers could find themselves Virgin customers in due time, whether there’s a merger or not.

Photo Credit: Sue Marek

It appears that the deal is crawling along because Virgin wants Helio to either declare bankruptcy (which would likely help Virgin out with Helio’s debt), or for it to liquidate. SK Telecom, which sank $270 million into Helio less than a year ago, is probably a bit hesitant about this.

Again, all signs point to something, anything, getting done. It might take a few more days or weeks. But in the end, it looks like Helio’s days have come to a close.

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Is Helio store closing sign of sale?

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Is Helio store closing sign of sale?

Helio going belly up, headed Virgin’s way?

Joe — Mon, 23 Jun 2008 12:24:35 +0000

We know that Virgin Mobile and Helio have been talking merger for a while. Nothing much has come of this since the initial rumors, but now we might see things start to move. Word is that Helio is shutting down many of its stores and kiosks nationwide. According to Engadget, this merger, in which little actual merging will take place, seems inevitable at this point.

Looking at the field of remaining MVNOs, it seems that the early adopters are at a distinct advantage. Tracfone (and Net10), Virgin, and Page Plus are among the few still standing. You could call Boost Mobile an MVNO, since that’s how they started out. But who knows if they’d still be alive if Nextel hadn’t purchased them.

Some will say that there is a future for MVNOs in America. The market isn’t ripe yet, they say, but the day will soon come. I’m not exactly doubting them. But that’s little consolation to the MVNOs that have already bitten the dust, and even less consolation to a company like SK Telecom, who put hundreds of million of dollars into what appears to be a failed venture.

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Helio going belly up, headed Virgin’s way?

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Helio going belly up, headed Virgin’s way?

Helio continues widening net losses

Joe — Mon, 03 Mar 2008 13:25:27 +0000

It’s looking more and more like Helio will be the next MVNO to bite the dust. I really don’t want to see that happen, but given the unlimited calling revelation hitting the postpaid carriers, their days seem numbered. Their case wasn’t helped late last week, when Sprint, the company of which Helio is an MVNO, announced an all-in unlimited calling, texting, and data plan for $99 — incidentally, the same price Helio offers for a similar service. And now we’re seeing that Helio is continuing to lose money.

They did increase their revenue significantly: from $46 million in 2006 to $171 million in 2007. But if you continue to operate at a net loss, what good is increasing revenue? They lost $192 million in 2006, and jumped that to $326 million in 2007. Mike Dano of RCR News cites a jump in advertising from $21.6 million to $47.5 million, but as you can see, their losses were far wider than that.

SK Telecom remains the only funding parent of Helio. EarthLink had been part of a joint venture, but bowed out last year amid problems of their own. The problem is that Helio has about $45 million left in what the company calls “cash, cash equivalents, and marketable securities.” Not good.

So will SK Telecom continue to put funds into Helio? Or are we going to see them suffer the same fate as the high-profile MVNOs that came before it?

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Helio continues widening net losses

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Helio continues widening net losses

Sprint’s unlimited plan puts heat on Helio

Joe — Fri, 29 Feb 2008 16:30:38 +0000

So instead of coming in at a lower price than their competitors for unlimited plans, Sprint decided to just offer a ton more services for the same price. They’re offering unlimited voice, text, Web, email, GPS navigation, and their own brand of mobile music and TV. Well now, doesn’t that sound a bit like the $99 all you can eat plan from Helio, an MVNO of that very Sprint network? Yes it does. Matt Hickey at CrunchGear picks up the issue to decide if Sprint is doing irreparable damage to its own MVNO.

The conclusion, really, is that this shouldn’t have much effect. Helio has offerings in its unlimited plan like YouTube, a more comprehensive data plan, and instant Flickr/YouTube uploads. The unlimited IM and MMS also helps Helio’s case.

But the demographics are where the separation really takes place. Sprint is seeking a general audience, as are all of the major carriers. Helio, though, is looking for a youth market that gets excited about quality handsets and who devour mobile content.

Helio’s Justin Ried perhaps puts it best when he says: “We’ve always been about pioneering plans that make it easy, from the concept of All-In to $99 Unlimited. It’s nice to see the major carriers following Helioâ€™s lead – but not all $99 plans are created equal.”

And honestly, looking at what you can get for $99 per month, I think Helio’s plan is the best. Hopefully other people see the same thing I do. Otherwise, whether there is a difference or not, this could be Helio’s swan song.

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint’s unlimited plan puts heat on Helio

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Sprint’s unlimited plan puts heat on Helio

Earnings season: Helio down again

Joe — Fri, 26 Oct 2007 14:01:27 +0000

We’ve said before that earnings season kind of annoys us. The quarterly reports dominate the news, yet most of it means little to us unless we have a stake in the company. However, we’ve come to realize that earnings are a signal of a company’s strength at a given time. Under that definition, Helio is looking rather weak. They’re down again, to the tune of $92.3 million. The gross losses were much larger, as the company was able to cover $51.7 million of it with quarterly revenue. Still, the MVNO has a long way to go to sustainability.

One of Helio’s backers, Earthlink, didn’t do so well itself, losing $79.4 million during the quarter. This includes a $41.9 million write-down related to Helio, though we admittedly have no idea what a write-down is. Presumably, it means money with which they funded Helio. It also incurred a $54.8 million restructuring charge.

Earthlink was careful with the statement made to investors. Here’s CFO Kevin Dotts:

“Combined, the restructuring and Helio announcements materially alter the risk profile and potential returns to EarthLink shareholders. While EarthLink is participating in some potentially attractive growth opportunities, the company is no longer investing significant amounts of current operating cash.”

We’re not exactly sure what Mr. Dotts is saying here, but it’s basically in the vein of, “you can see that we didn’t do so hot in the third quarter, but trust us, we’re working to grow and adapt to the current market.”

There were no specific talks of divestment of Helio, though one has to think that the subject has been discussed among Earthlink execs.

[mocoNews.net]

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Earnings season: Helio down again

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Earnings season: Helio down again

Helio offering discounts on handsets

Stuart — Wed, 17 Oct 2007 15:00:46 +0000

Things haven’t been going too well for Helio lately. First they got the news that one of their funders, Earthlink, would “temporarily” cease their investment. That’s not good for an MVNO that sucks up money at a rate comparable to Amp’d. And then came the news of Disney Mobile’s demise which once again caused a media frenzy. As another yet-to-turn-a-profit MVNO, Helio was much mentioned, and not in glorifying tones. But they do have a quality service. Now they’re trying to draw people in with discounted prices.

Their handsets are what makes the company unique. In essence, they’re just like Amp’d in that they target a tech- and content-happy post-adolescent group. However, they differ in their focuses. Amp’d went straight for the content, neglecting handsets. Helio made sure the handsets were in place first before starting to lay down money for content.

Now Helio will offer a discount through mid-Novermber on these handsets. The Helio, an uber-phone that we think is better than the iPhone, gets a $50 price cut, from $299 to $249. The new Samsung Fin goes from $200 to $100. And the Samsung Heat goes from $100 to $50.

We appreciate the idea. Helio thinks that by offering a discount on it’s most attractive commodity, it can gain new customers. We’ll see if it works. Hopefully this is not a last-ditch effort by a company about to go under.

[Phone Plus Magazine]

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Helio offering discounts on handsets

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Helio offering discounts on handsets

Earthlink halts funding of Helio

Joe — Mon, 24 Sep 2007 15:00:26 +0000

We’ve talked about it a couple of times before: There is a distinct possibility that Earthlink, struggling itself, could sever ties with Helio, its money-devouring MVNO. Helio is forecasted to lose roughly $350 million this year, which is not good for a dial-up Internet company that is restructuring in order to adapt to a broadband world. They’ve taken the first step towards that severance, announcing that they will cease funding the MVNO for the time being. This does not, though, necessarily signal the end for Helio.

Earthlink isn’t the only company in on the Helio venture; SK Telecom, a South Korean telecommunications company, is also a partner. They’re not in a financial bind, so they announced that they will sink another $270 million into Helio. This could move the 50-50 venture more in the favor of SK, though talks are ongoing.

Analysts and industry veterans say it’s hard to buy minutes and data from another carrier and then build a compelling enough service that you can charge a profitable premium.

While it’s tough, we’ve seen some success in the U.S. with Tracfone, and to a lesser extent, Virgin Mobile. However, whenever looking at MVNOs, analysts like to evoke Amp’d Mobile, which failed miserably. They supposedly signed on too many subscribers too quickly, and weren’t able to handle all transactions internally. Helio, however, stands out from Amp’d in that regard. They use SK’s intricate billing system, which allows them to stay on top of things that Amp’d let slip through the cracks.

Many will view this as the beginning of waning days for Helio. However, we feel that SK’s increased involvement will only help the MVNO. Earthlink has their own problems, and the last thing they need is a cell phone company eating up their funds. That brings to light the biggest issue with MVNOs in the U.S.: If they turn a profit, it doesn’t come quickly. Investors must exercise patience, and in Earthlink’s case, patience just isn’t possible. But it is with SK.

[InfoWorld]

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Earthlink halts funding of Helio

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Earthlink halts funding of Helio

Uh oh, Helio: 100 jobs cut in “restructuring”

Joe — Fri, 31 Aug 2007 16:00:13 +0000

You might not be able to not call them a phone company for much longer. Okay, maybe that’s a glum prediction for the MVNO, but Earthlink’s current problems aren’t being helped much by the money-sucking cell provider. The company is making cuts, and even though they remain stead in their stance that Helio is safe for the time being, they won’t remain at full capacity. About 100 jobs have been cut from the company, which could be the precursor to a larger move.

The reason for the layoffs, according to the company, is “in an effort to streamline its operations and refocus its field sales team towards direct sales.” We can see that, we suppose. They are, after all, losing money, so it’s probably best to rethink the game plan. And to buy more time for the thinkers, some people just had to go. We don’t like the idea, but we understand it.

Problem is, the cut represents 1/7 of Helio’s staff. That’s enormous. So if you’re a current subscriber, or are thinking of subscribing, we don’t think you should be expecting much in terms of customer service. That’s always the first place they cut positions.

There are some bright signs amidst the firings, though. The company claims that its best month yet was July 2007, and they are on track to bring in $100 million in revenues. Good for them. They also plan to open more kiosks, though we think that’s a mistake. There is nothing worse then being engaged in a high pressure sales situation at a kiosk. It makes us never want to do business with that kind of company.

We’d really like to see Helio stick around. Despite their baneful contracts, they have cool devices and surprisingly reliable service. If they end up expanding, we can see a prepaid version coming along, which would be a boon to us consumers.

[GigaOM]

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Uh oh, Helio: 100 jobs cut in “restructuring”

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Uh oh, Helio: 100 jobs cut in “restructuring”

Earthlink cutting costs, could mean severance of Helio

Stuart — Wed, 29 Aug 2007 15:04:48 +0000

Yeah, we dig Helio, even though they don’t have a prepaid deal (credit to reader Melissa E for prompting our call to customer service to verify that). In fact, if they did, we might just drop our current plan and switch right now. They have killer phones and excellent voice and data features, all for a not-so-expensive price, all services considered. However, like Amp’d, they’re a money-sucking machine. Their advantage is that they don’t have a big telecom like Verizon calling in a debt. The bad news is that they’re owned by Earthlink, a company that isn’t doing so hot these days.

Earthlink announced this week that they are prepared to lay off 900 employees, close four offices while downsizing two others, and buy back $200 million of its own stock.

“These changes get our cost structure in line, but there is much more to do,” [CEO Rolla] Huff said. “While we recognize this is a difficult time for those affected individuals, this was a needed action for the company to better align our cost structure with our existing business.”

We remember Earthlink back from the days when they offered probably the best dial-up service out there. However, the days of dial-up are behind us, and Earthlink doesn’t quite have a hold on the broadband market. They’re really in a bind, and having Helio drain more and more money daily isn’t helping.

Part of this restructuring surely will involve plenty of debate about the fate of Helio. They’ve yet to turn a profit, which might lead some of the company’s executives to call for its demise. Helio does have plenty of potential, though, and it could just be a matter of time before it catches on and starts making Earthlink some money.

For right now they, Helio remains alive and — not well, but at least okay. It’s doubtful that Earthlink would pull the plug within the next six months, during which it plans to break even with its current cuts and anticipated restructuring costs. After that, expect more speculation as to the MVNO’s future.

[BetaNews]

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Earthlink cutting costs, could mean severance of Helio

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

Earthlink cutting costs, could mean severance of Helio

We’ll call it a phone: Helio adds another killer device

Joe — Thu, 16 Aug 2007 15:00:37 +0000

Helio, a service provider soon coming to PrepaidReviews.com, has launched a new multimedia phone: the Samsung Fin. It shares many features with the company’s Ocean model, though it is an ultra-thin flip phone, rather than a PDA.

Fans of phones like the RAZR will have a field day with the Fin — it is a mere 11.4 millimeters deep which, for those of you who aren’t metric-friendly, is really freakin’ thin. But Helio has managed to stuff a number of impressive hardware features under the shell, including a GPS, 3 MP camera, and a 3G EV-DO radio. If you’re excited now, wait ’till we get to the applications.

Our favorite is the built-in RSS reader. We’re subscribed to about 40 feeds — some for work and some for play — and if we go out we always come home with over 100 items in our reader. We end up not reading the majority of them, but the process does take time. With an RSS reader on our mobile, we could ax those junk posts in smaller batches, thereby taking less time in the long run — or at least making us think we’re saving time.

We’re also big fans of HelioUp, a program that uploads photos and videos directly to Flickr and YouTube. Beyond that, it has Myspace integration, unified e-mail access, and the standard text messaging and instant messaging.

The GPS is free via Google Maps, though a mere $3 per month can nab you a more reliable service. Nothing against Google or nothin’, but we like trusting our navigation issues to companies focused on just that. For $3 a month, it’s worth it for us.

The price: $175, but you get a $50 rebate. Not bad, Helio. Not bad at all.

[Fin from Helio] via [IntoMobile]

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We’ll call it a phone: Helio adds another killer device

This post originated at PrepaidReviews.com - The number one resource for NET 10 Prepaid information on the web!

We’ll call it a phone: Helio adds another killer device