We'll be honest with you -- it's a bit disheartening to watch the (seemingly) inevitable happen to Helio. After all, it's managed to soldier on despite hordes of other MVNOs hanging it up here in the US of A. Nevertheless, data gleaned from EarthLink's most recent annual report shed some light on its deteriorating situation. Reportedly, Helio's net loss "widened by 41.3-percent to $326.6 million in 2007 compared to $191.8 million in 2006," yet revenues managed to grow 267-percent to $171 million from $46.6 million the year prior and subscriber growth rose 28-percent over last quarter to 180,000. Add those figures to the $42 or so million it lost in 2005, and we're up to a grand total just south of 560 million American dollars. Tough times, indeed.
[Via
Silicon Alley Insider]
Reader Comments (Page 1 of 1)
Brodie @ Feb 29th 2008 4:09PM
Sounds just like the investment opportunity Sprint would be interested in.
Erwos @ Feb 29th 2008 4:23PM
They're running off Sprint's network already.
I'm still waiting for the MVNO that doesn't sell phones - "we provide the service for cheap - you support your own phone".
Justin @ Feb 29th 2008 7:27PM
Actually, it might be a good idea for Sprint to do exactly that - if the shares were available to them. Helio's losses grew, but they are less than forecast, while revenues are greater than forecast. Both are very good things and mean the company is doing better than anticipated.
Anyone who expects Helio to be even close to profitability at this stage hasn't been paying attention. SK Telecom certainly doesn't, and has the cash reserves to the finance the company all the way to profitability. From today's numbers, it looks like that might happen sooner than anticipated.
Gil @ Mar 1st 2008 1:20AM
Mustve been the shitty custserv they had EVERY time I had to call.
EnvyGeeks @ Mar 3rd 2008 4:28PM
Actually Alltel lets you bring in any phone you want as long as its CDMA. I think they still support GSM in some areas from the other companies they bought out. They even have a department dedicated to moving cellphones over to Alltel. You can call Alltel and get the number, they will also move your phone number.
On another note. A crappy rep at Sprint argued with me that Alltel is GSM and not CDMA, he kept telling me I was wrong, even after I told him that I was with Alltel and wanted to move my last phone over to them because they're better, he kept on track though, even his boss told me the same thing "Sir you're wrong, Alltel is GSM". I thought it was rather intriguing they would flat out lie to keep a phone from being unlocked and moved, that or him and his boss were just that big of idiots. I ended up calling all night till I met a rep who actually knew how to do his job and would at least try.
Allan @ Feb 29th 2008 4:12PM
Please don't die Helio... I don't want to give up my Ocean or go back to Verizon.
flo @ Feb 29th 2008 4:15PM
i liked my helio, but then came the iphone.....
Julie @ Feb 29th 2008 4:16PM
AGH. I like my ocean and * plan :/
Zal @ Feb 29th 2008 4:16PM
That's too bad. I remember a year or so ago reading an article in Technology Review that detailed all the innovations in the design of the Ocean (dual slider, etc..). Pretty revolutionary, but obviously not a guarantee of a success.
Captain Obvious @ Feb 29th 2008 4:23PM
If I did the math right, that is a loss of about $1800 per subscriber per year, or $150 per subscriber per month. Maybe they can make it up in volume?
murray @ Feb 29th 2008 4:24PM
I never got it. Their products seemed to be youth-oriented, but with very adult plan prices. I'm not sure how they expected to succeed. I know there are plenty of rich parents, but *that* many.
Neoprimal @ Feb 29th 2008 4:33PM
100 is not an adult price for service that includes everything. Helio plans are really inexpensive. If I wasn't in love with my Smartphones, Tmobile service or customer support, I'd have gone to Helio as well since I like the gimmicky stuff, data/gps/ims, etc. Alas, they don't offer smartphones and I've never been ok with the idea of using 'shell' cell companies (MVNOs).
Anthony @ Feb 29th 2008 4:52PM
$100 is an adult price for someone making minimum wage, unless they have nothing else to worry about.
Neoprimal @ Feb 29th 2008 5:21PM
What youths do you know that have all these bills to pay why they can't spare $100 a month on a cell phone they'll get to do everything with? Unlimited everything for 100 a month or 85 for 1000 minutes with everything. Adult priced plans are more like Verizon, ATT, Tmobile etc. that you have to add all these things to. Heck, my cell plan was $80 a month or so for nothing, like 300 or 400 minutes back in college and I covered it easily working part time.
StrangeBum @ Feb 29th 2008 7:05PM
Dude, seriously. $100 dollars is alot of money. I'm 18 years old, and that is way too much for me to pay for a cell phone bill. Most of money is spent towards car payments and insurance and the cell bill I have now, which ironically only costs me $55 a month and gets me nearly unlimited everything.
1250 mins, unl text, unl mms, unl data, email ..pretty much more than what I need, thanks to the Sprint SERO plan.
gb @ Feb 29th 2008 10:04PM
I'm on Helio, and I pay $65 a month for unlimited data. it gives me 500 minutes voice, which i never even come close to reaching. If $100 is too expensive, talk less. That said, helio still has the cheapest unlimited (i mean REALLY unlimited) plan out there. Come to think of it, that's probably why they're losing so much money.
Neoprimal @ Mar 2nd 2008 6:33AM
OK, my original point stands that "100 is not an adult price for service that includes everything". Some people don't need unlimited everything, I'm not disputing that. But price per value, for those who talk ALOT or are always IMing or Texting, 100 is not an 'adult' price. I'm saying this based on all the other networks that charge you almost a la carte for data/txt/bundles etc whereas Helio gives you minutes and then unlimited everything else for a set price.
Before Helio and pretty much recently, you were not going to get unlimited data, txt, gps, video, etc. in addition to even 1000 minutes or so for less than $140. Even as Helio existed companies would give you minutes and you'd have to add stuff separately, data and txt/mms or txt/mms/data etc. etc. So Helio really has been the cheapest around and thus, again referencing my point that it's not really an adult price. Now is where things have changed and you can get these new 'smartphone bundles' that include data, txt and mms for 1 fee in addition to the voice plan.
puh_fifer @ Feb 29th 2008 4:43PM
"Don't call it a phone, call it a moneypit."
Chasqui @ Feb 29th 2008 4:50PM
I have an Ocean and was attracted by the form factor and functionality. What really got me to switch was a comparison of the plan prices. For the functionality (IM, SMS, web, GPS google maps, myspace, youtube, etc, etc) they are the cheapest out there. Verizon, who I switched away from wanted an arm and leg for anything close, and had horrid old phones. I agree that for the youth market (where they are targeting) the plans are pricey but again - no other carrier touches their price. I hope they find a way to become profitable. Maybe rethinking their target demographic. It may be too late at this stage.
Drew @ Feb 29th 2008 4:51PM
Dang... This really sucks :/
If I wasn't stuck in my plan with Verizon right now I would of switched to Helio but I don't want to shell out $175 for the cancellation fee. I hope they can make a turn around. Hold on Helio!
I hate to see companies like this begin to loose money when they have such a great idea. They have great plans, great prices, and exclusive phones. Keep us posted Engadget. I still may switch to them one day. They earn my business more than Verizon does.
Robb @ Feb 29th 2008 4:51PM
It seems pretty obvious. They're entire claim to fame was that they let you access myspace. Wooo. Now I don't have to walk to any public computer to abuse my eyes and ears with horribly designed pages by 12 year old emos.
Fatima @ Feb 29th 2008 4:52PM
hahahahhahahahaha!
I remember how when the iPhone came out everyone was like "I'm better than all you people with iPhones, I have a Helio!"
eggothewaffle @ Feb 29th 2008 4:56PM
This is great news for consumers; the less competition there is, the better and lower priced the products will be!
Rainier @ Feb 29th 2008 5:12PM
Huh?
Someguy @ Feb 29th 2008 5:13PM
I'd think that it would be even more competitive. It seems since Helio offered all you can eat for $99/month, then came Sprint, then Verizon, AT&T and then TMobile. If Helio makes it $89 (probably when they get more consumers), I bet Sprint and the other three would come out and knock it down $5 or ten dollars.
joe @ Feb 29th 2008 5:19PM
Um, I think prices would get higher, unless...price fixing?
eggothewaffle @ Feb 29th 2008 5:41PM
I WAS BEING SARCASTIC.
:wtf:
ItsTheOMGShow @ Feb 29th 2008 6:38PM
WOW @ Engadget commenters. That was clearly sarcasm... who but an executive at Verizon would agree with what eggo said? You guys need to chill out. Or grow a brain.
marinp @ Feb 29th 2008 5:26PM
He was being sarcastic about the competition thing.
and Christ, I still have year on my contract. Any idea if Sprint would be cool and let me hop over to theirs once Helio goes under - and choose my own plan, and get a subsidized phone?
Zach @ Feb 29th 2008 5:28PM
when will people learn to actually buy the better deals in wireless?
john @ Feb 29th 2008 5:48PM
probably about the same time they start using better computing platforms, demanding better tv programming, etc.
john @ Feb 29th 2008 5:51PM
until then, we're stuck with Verizon, AT&T, Windows, Survivor, etc.
Graham @ Feb 29th 2008 6:22PM
Man this sucks. I really wanted a helio after my att contract was up. We for once, had a half-cool phone company and the morons at the top screw it up.
jeff allan @ Feb 29th 2008 6:26PM
I like my Ocean, but I have been watching the news stories about Helio, more than likely they will go under. What this will mean for subscribers is unclear. A new expensive paperweight perhaps?
I know that while the coverage for the phone has been great, I travel all over the states, the customer service both in the store and via phone is horrid. I have had to call on more than one occasion over six times to correct billing issues when I added an additional line. If i had the chance again even though I like the phone and coverage I would not go with Helio.
Justin @ Feb 29th 2008 7:15PM
Losses were LESS than projected, while revenues were GREATER than projected. Remind me how this is bad news again?
Inimical @ Feb 29th 2008 7:19PM
People need to realize two things. 1, Wireless companies tend to report negative earnings within the first 5 years of their life. 2, SK Telecom has pretty deep pockets and they are very interested in ensuring their presence in the US market. Whatever they've lost this far it's still cheaper than building out their own network.
paul @ Feb 29th 2008 7:46PM
Hopefully they'll stay alive. They've been a great innovator with both phones and plans (Google Maps/GPS, MySpace/Facebook, $99 all-in).
If they don't, then hopefully someone will find a way to hack my Mysto to work with a Sprint plan (God knows Sprint will want me to buy one of their phones).
And Engadget, how about helping out by posting positive news as well, eh? I didn't see anything when the Mysto was released.
uwgeek07 @ Feb 29th 2008 9:25PM
That is indeed sad to see, I have had my Ocean for a few months and absolutely love it. I am a college student who works in IT part time, and for $65 a month to be able to check my school/work e-mail surf, the web, text friends, and 500 minutes is a GREAT deal. I will agree the customer service sucks, but then again I don't rely on them too much unless its a network issue.
Hang in there Helio!
ryaninc @ Feb 29th 2008 9:52PM
This really sucks. I was seriously considering switching to Helio when my contract expires in a few months. I can get my wife and my self both unlimited everything for less than we're paying now for not unlimited everything and cooler phones to boot. I hope they stick around...
Jamar @ Feb 29th 2008 10:20PM
They need more phones. They need LG, SKY, Curitel, all those Korean manufacturers that make the phones we drool over because we can't have it. No more rehashes of phones already sold on other carriers. The Hero was nice (except for my Korean classmate who pulled out his (on SK Telecom) and said he had it for 5 years already).
CaberetVoltaire @ Mar 1st 2008 9:48AM
if you watch helio commericials from korea they run off of SK Telecoms network
s10 @ Mar 1st 2008 9:10PM
Helio will die before 2008 is over, it is so obvious.
s17 @ Mar 2nd 2008 2:03PM
Is it good that the ceo is stepping down, and also the fact that about 6 top board members have left helio all within the last 1-2 months?