http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/ Engadget Comments for Two years and half billion later, Helio sells for a song. But why? http://www.engadget.com/media/feedlogo.gif http://www.engadget.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/]]>Jun 27th 2008 3:11PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 4:19PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:01PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:07PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
As a HELIO customer this past year, it was an OK ride. I'll be paying my ETF and getting the iPhone 3G next month and paying more to AT&T for less in service (no MMS, no unlimited text). But, I have no doubt that I'll like my iPhone 3G way better than my Ocean.]]>Jun 27th 2008 3:10PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:10PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 28th 2008 12:01AMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:11PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
Unrelated: Are the comments on the Regan / Alzheimers post turned off? Because that's pretty shady. As somebody who staunchly supported Engadget during the last photo fiasco (i believe a kitten in a CRT monitor based cage that was powered off -- the photo was harmless and a riot) i just wanted to chime in my disapproval.

Good day.]]>Jun 27th 2008 3:15PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
general executive mis-management did it, i'm thinking, and leaning too heavily on mediocre/bad marketing...

don't really know though. wonder if we'll even really get to see what went wrong.]]>Jun 27th 2008 4:07PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/


HELIO + Virgin Mobile USA= J

Two great companies team up to bring you more.

HELIO and Virgin Mobile USA are teaming up to combine our strengths and deliver a better mobile experience. On June 27th Virgin Mobile USA announced that it had signed an agreement to acquire HELIO.

HELIO would gain access to Virgin Mobile USA’s extensive distribution network and broad customer base, while Virgin Mobile USA would gain access to HELIO’s exclusive, high-end devices and premium services. Both companies look forward to coming together to bring exciting prepaid and postpaid opportunities to their customers.

Q: What does this mean for current HELIO members? Can I still use my HELIO device, while keeping my HELIO service plan and number?

A: Current service plans will continue without interruption. HELIO members are at the center of this transaction and we’ll continue to bring them the innovative mobile services they’ve come to expect.

Q: Can new members still sign up for HELIO service?

A: Absolutely. HELIO will continue to offer exclusive, high-end devices and our innovative All-In plans.

Q: Will the HELIO brand be retained, or will everything migrate to Virgin Mobile USA?

A: Over time, we expect that all aspects of the customer experience will be integrated under the Virgin Mobile USA brand. Integration of the direct sales channel will begin immediately, and we expect that existing HELIO products and services will soon be offered through the Virgin Mobile USA website at www.virginmobileusa.com.

Q: So what’s next?

A: We’re excited by the possibilities our new, combined team offers. We have some big ideas, but as you can imagine, a little bit of housekeeping is in order before we share them. Stay tuned!

Q: Does this affect my current contract with HELIO in any way? When Virgin Mobile USA does acquire HELIO, can I end my current contract without paying an early termination fee (ETF)?

A: HELIO contracts remain in effect and unchanged by this transaction. HELIO members who wish to end their contract early will still be subject to an early termination fee (ETF).

-- Your friends at Helio]]>Jun 27th 2008 3:17PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
::keeping fingers crossed b/c I want an iPhone::]]>Jun 27th 2008 4:46PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:18PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/nuff said]]>Jun 27th 2008 3:19PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:24PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:20PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
I kid, I would be every bit as pissed as you are.]]>Jun 27th 2008 4:05PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 5:01PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:23PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 3:37PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/]]>Jun 27th 2008 6:41PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 4:10PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
Calling Trolltech a mobile linux company is like calling HP a printer maker (ala theinquirer.net). Certainly they have strong affiliation with Linux, but you should find out a bit more about Qt.



]]>Jun 27th 2008 4:13PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 6:57PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 4:59PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 5:40PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
Alltel doesn't have to split its ARPU with anyone. Obviously Alltel incurs quite a few expenses in its operation, but it doesn't owe anyone a giant cut out of whatever revenue it gets.

But if Helio's ARPU is $80, a likely huge chunk of that goes to Sprint, since Helio users are mostly heavy users, especially data. For argument's sake, say Sprint got $50 of that pie on average.

That would leave Helio with $30 per user to cover all costs, including new subscriber acquisition costs (marketing, device subsidies, store overhead, 3rd party seller commissions) and ongoing customer base maintenance costs (customer service, I.T., billing).

Even if Helio's actual revenue (post-Sprint) was $40 per user, that would still add up to less than $8 million a year. Put that in perspective -- some Outback Steakhouse outlets get more revenue than that. How can you operate a serious, device-exclusive, postpaid MVNO?

All this said... is $39m such a bargain? Seems like fair price to me.]]>Jun 27th 2008 5:57PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 6:06PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 6:23PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 28th 2008 1:25AMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/1. the market they "dominate" is in a country with about 20-mil people in the cell phone age (tiny ass market). and they only have less than half of that which makes them not much larger then Virgin Mobile in subs.
2. a big part of why they have almost half their market is because they have a monopoly on the 800mhz frequency. a monopoly they are losing in 2011 so you can bet they're aggressively trying to enter other markets
3. their corporate structure is archaic. they've recently tried to revamp it but haven't been doing very well. this was a big problem at helio as the two business cultures didn't mix at all.
4. SK's in trouble. their margins are dropping and their growth has been flat for years. In the first-quarter its operating profit margin fell to 19.5% from 24.4% a year earlier.
5. the most obvious reason sk isn't as 'smart' as you're saying is the fact that they've already failed in their first forey into the US market and they failed handily. 39mil was peanuts and 500mil isn't even close to what was spent. they devoted tons of SK employees to helio and even gave Helio several hundred employees outright. software was bought or written for helio. SK seemed to be the directors of technology (which was a friggin mess) so i'd put the investment well well over 500mil. there were also several rounds of funding, some included earthlink and some didn't. but this article is right. bottom line, SK paid Virgin Group to buy helio so SK could have a stake in virgin mobile.]]>Jul 30th 2008 8:11AMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
Does this mean my Nightmare is over!!???

Its been the worst ....year ever with me and Helio. Worst CS ever.

Loved the phone and service though.

C'mon Helio it took you guys a span of 6 months and 5 replacements to send me a phone that worked????

FIRE THE QA guy right away he difinitly was NOT doing his job.

SO AM I FREE!!!?????

Please tell me soooooooooooooooooooooooooooooooooooo

I also want the 3G Iphone will I have to pay a disconnect fee?

THEY BETTER NOT!! For all that BS they put me through....and if they try Im sending my case to the BBB. PERIOD!]]>Jun 27th 2008 6:38PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 27th 2008 7:10PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/WOW!!! YES!!!

Does this mean my Nightmare is over!!???

Its been the worst ....year ever with me and Helio. Worst CS ever.

Loved the phone and service though.

C'mon Helio it took you guys a span of 6 months and 5 replacements to
send me a phone that worked????

FIRE THE QA guy right away he difinitly was NOT doing his job.

SO AM I FREE!!!?????

Please tell me soooooooooooooooooooooooooooooooooooo

I also want the 3G Iphone will I have to pay a disconnect fee?

THEY BETTER NOT!! For all that BS they put me through....and if they
try Im sending my case to the BBB. PERIOD!]]>Jun 27th 2008 6:39PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jun 29th 2008 10:24AMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/
1) As an MVNO, Helio had an UNREAL business model: KISS--Keep It Simple Stupid. Rather than nickle & diming every one for EVERY LITTLE FEATURE, they set one price for minutes + everything else; the 'everything else' being sold @ FAR BELOW it's worth! Even now the only Major service provider that can even come CLOSE to touching them plan wise is Sprint's$99 "Simply Everything" plan which even there it's on a completely level playing field (same features, same add ons, HELL EVEN THE *EXACT* SAME DARN NETWORK. Where they ran afoul was a a) poor outsourced customer service (one reason they could offer plans so cheaply) & b) under-training of sales people on how to really market these plans to people. BELIEVE ME-I didn't even consider using helio for the first 5 months after hearing about them b/c of service plan sticker-shock.

2) Isn't it funny that as the big 3 providers start stagnating in terms of new customers, well without gobbling up some other services customers anyway, they start throwing out unlimited crap--of course like most giant entities (being small-brained) they never could get it right unitl Sprint threw it's hat in the ring. THEN we suddenly have a service that gives you unlimited minutes + unlimited data for $99 (HMMMMMM--sounds familiar!) MVNOs tend to become a breeding ground for ideas for the major networks (ie-Disney Mobile's advanced GPS features for kid phones, ESPN's sports centered phone, etc.)

3) While a sudden new craze of Unlimited plans has suddenly struck the big 3, they still don't address the people like me: I BARELY go through 250 minuts a month but I LOVE the data service. So to me paying $65/month for 500 minutes & unnlim data was PERFECT-- I had a buffer just in case (most services don't offer lower than 500 min anyway) and getting all my EVDO data for what amounted to $15/mo and no txt msg plan to get. So overall I'd pay roughly $35 less than sprint ($25 power vision plan + $10 Unlim Txt).

Last thing- isn't it funny how Virgin Mobile (which is run on the Sprint network: YESPEOPLE IT IS AN MVNO BELIEVE IT OR NOT!!!!; & Helio (also on the sprint network) are merging. It's really win-win on both sides of the table!]]>Jul 7th 2008 10:55AMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jul 7th 2008 6:43PMhttp://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/http://www.engadget.com/2008/06/27/two-years-and-half-billion-later-helio-sells-for-a-song-but-wh/Jul 14th 2008 3:17PM