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A stroll through the MVNO graveyard
Back in the early days of Engadget, everyone -- including us -- thought mobile virtual network operators (MVNOs) were totally poised to be the next big thing. And why not? You get to be a wireless carrier without having to operate your own infrastructure (which is by far the most expensive, difficult part). Just what the doctor ordered for the big, stodgy wireless carriers, each struggling to balance differentiating themselves while trapping their customers in their walled content and services gardens.What we got instead was failed business model after spectacular failed business model, leading to a domino effect of collapses that left just a precious few companies standing. Let's take a look at the carnage over on Engadget Mobile, shall we?
Virgin Mobile formally seals the deal on Helio acquisition
We know, the little possibility that the whole deal could fall apart has been keeping you wide awake for months, but at long last, you can push aside your anxiety and hit the sack. Virgin Mobile USA announced today that it had "completed its acquisition of Helio," and all of the terms put forth on June 27th were used in the final close. Aside from garnering all the necessary regulatory approvals, Helio shareholders SK Telecom and EarthLink have received 13 million shares of Virgin Mobile USA Class A common stock, with a value of around $38 million. It's also noted that both SK Telecom and Virgin Group will each invest a cool $25 million in Virgin Mobile USA for preferred shares. And then, there was one.
They're no Ocean 2, but Helio busts out White Mysto and Red Heat
Just because Virgin's scooping up Helio doesn't necessarily mean the product parade needs to stop (not to say it was moving at anything more than a glacial pace to begin with), and to that end, the MVNO has just released its Mysto and Heat models in white and red, respectively. The creatively-named White Mysto and Red Heat are initially available exclusively to the Korean community -- a strategy Helio has used before -- and there's no word on if or when they'll be outed on a wider scale. We would've preferred an Ocean 2 release here, but at the very least, you've got to admit that these new colors suit 'em well.[Via Heliocity]
Matias Duarte, designer behind Sidekick and Helio, now developing Palm's next-gen UI
So we heard from a very reliable source that mobile user interface guru Matias Duarte -- who you may know as the man behind the Sidekick and Helio UI / user experiences -- actually left Helio late last year to join up with Palm. Although no announcement was made, we hear he and his gang of designers jumped ship (well before Helio completely flooded) to take on the monumental task of designing the UI for Palm's next-gen mobile OS (aka "Palm OS 2.0 or II"). His resume online now lists him as "Senior Director, Human Interface and User Experience" doing "Something new..." since September 2007; we got in touch with Palm, who confirmed that he's now under the company's employ.Of course, expectations should be pretty high -- Palm's only been promising this supposedly game-changing OS since around 2004, and the company's reputation and pedigree is (or at least it used to be) in groundbreaking mobile UI design. But this news also kind of makes us wonder: if they didn't have a killer UI and user experience team already in place and long-since working their asses off by late 2007, exactly how far along are they on this thing, anyway?
Two years and half billion later, Helio sells for a song. But why?
Money-losing companies with interesting technology and a small, if rabid, customer base still frequently tend to sell for healthy chunks of change -- especially in the wireless space. Look at Trolltech, for example, the mobile Linux company that never really made any money, yet somehow managed to be acquired by Nokia for its talent and IP, which apparently carried a value of over $150m. We know Helio was burning cash on a whole 'nother level, but that doesn't entirely explain why SK Telecom was so absurdly desperate to dump their $500m investment. At a $39m acquisition price, SK didn't just lose its shirt -- it lost that, the shoes, and then the pants. You know, the pants with a half-billion dollars in them.Continue reading on Engadget
Virgin Mobile to buy Helio for $39 million in equity
It's official, MVNO lone survivor Virgin Mobile is picking up the struggling Helio from SK Telecom and Earthlink for a cool $39 million in Virgin Mobile USA stock. They expect the deal to close in Q3 2008, pending regulatory approval. The acquisition comes as no surprise, but it's still sad to see the one true innovator in a mostly doomed MVNO space fall to that pesky little "completely failing to make money" thing. The good news is that it while the Helio brand will be phased out, Virgin Mobile isn't just in this for the 170,000-ish subscribers it'll be picking up. They plan to leverage Helio's technology and content offerings, not to mention the willingness of its customers to pay a few extra bucks for the perks, to build the Virgin Mobile brand into new spaces -- spaces which hopefully prove profitable and Ocean 2-ey.
Helio stores shutting down
The future of Helio is still up in the air -- one minute it's about to be sold to Virgin, the next the Ocean 2 is popping up in videos -- and it looks like this week will end with some equally ambiguous news: Helio stores appear to be shutting down. That's the word according to Fierce Wireless, which took this shot of a Helio store in Denver with a sign in the window that reads "The Helio Store is closed. Contact their customer support." Hmm, that sounds like some part of Helio is going to keep running -- hopefully we'll find out how this soap opera ends sometime soon.
Helio sale to Virgin Mobile could happen this week?
Do you hear that, Helio? That [cue Sir Richard Branson's soothing voice] is the sound of inevitability. Rumors have been swirling for a few weeks now that SK Telecom -- Helio's majority owner -- is getting ready to cut, run, and offload its share to Virgin Mobile, rolling the scrappy MVNO into the one and only virtual network in the US that's been met with substantial, quantifiable success (more recent stock woes notwithstanding). Now, the Financial Times is reporting that a deal is cued up and ready for a public introduction as early as this week. The sooner, the better, because tons of questions remain about the fate of subscribers and the introduction of the pretty hotly anticipated Ocean 2, a device that at one time could've been Helio's savior; too late for that now, we guess.
Helio's Ocean 2 spotted on multiple videos
So there's really no telling what's up with Helio as an MVNO, but there's plenty going on with the Ocean 2 handset. Just yesterday we noticed a spy shot of the elusive mobile, but unfortunately, the video in which it was captured from had been conveniently removed. Today, however, a whole host of new vids have surfaced over at HelioCity, one of which actually shows the unit while gaming. Check 'em out while you still can in the read link below.[Via phonemag]
Helio's Ocean 2 in the wild
Sure, Helio is going through a bit of a rough patch right now, what with those retail outlet closings and nasty Virgin merger takeover, but as far as we can tell, the company is moving forward with the Ocean 2. As you can see by the above shot -- nabbed from a YouTube video -- the slider looks eerily similar to its predecessor, though we know it's getting spec bumps all around. Apparently the source material has been wiped out of existence, and if things keep moving in the same direction for the MVNO, this might as close as you get to one of these babies. Enjoy!
Helio's flame going out: stores to shutter, customers heading to Virgin?
It ain't over until it's over, but we just got word that Helio store managers received notification this week that the axe is finally falling: (at least some of) the nationwide chain of retail stores will be shuttered during Virgin's takeover of Helio. As we've heard, "there is no 'merge' in this merger," so it sounds like after this year's big executive reshuffle, SK Telecom is bailing on their half-billion dollar enterprise a big way. No word if the fabled Ocean 2 will make it -- or if Virgin will even let Helio customers keep their phones.Alongside Helio -- more or less the last man standing -- the great MVNO goldrush also dies. Unfortunate that besides Virgin and a few local and M2M providers (like Amazon's Whispernet), pretty much no one was able to make it work. Then again, no one ever never said making cellphones and running any kind of carrier was easy.
Helio's Ocean 2 exposed!
It may not be the largest photograph you've ever seen, but unless you work for Helio or Pantech, we'd be willing to wager a few pennies that it's the largest shot of the Ocean 2 you've ever seen. Dual sliders always get the blood pumping, so head on over to Mobile for a few leaked details of the phone that'll end up sitting atop Helio's lineup -- eventually, anyway!
Helio Ocean now $99 after rebate, Ocean 2 around the corner?
As Virgin Mobile, Helio, and SK Telecom debate their collective futures behind closed doors, life goes on for Helio's customers and potential customers. It's been a little while since the scrappy MVNO's released any hardware, let alone a blockbuster like the Ocean; we'd reckon they're about due to wow us, and a new offer on the original Ocean might just foretell that new stuff's around the corner. After rebate, the Ocean now goes out the door for a totally reasonable $99 -- which might actually end up seeming like the most unreasonable $99 you've ever spent if the rumored Ocean 2 gets official soon. We're just sayin'.[Thanks, Tyler]
Virgin Mobile: okay, yeah, we're talking to SK Telecom
Looks like Virgin Mobile USA and Helio parent SK Telecom didn't bother to get their stories straight before turning to the press over recent rumors that they've been talking marriage. Right on the heels of an SKT statement that talks of a Virgin Mobile takeover were "groundless," Virgin Mobile has come out with a super-brief statement saying something quite to the contrary -- that the two are, in fact, in "preliminary discussions" over "possible strategic opportunities." That's about as vague and unhelpful as it gets -- a level of vagueness that's really only saved for situations where something big is about to go down, actually. The MVNO goes on to say that it's gonna stay mum on the subject at this point unless "a definitive agreement is reached," but at least we know they're chatting. [Via mocoNews]
SK Telecom says talk of Virgin Mobile takeover of Helio is "groundless"
Well, it looks like the struggling Helio may not be falling under the Virgin Mobile umbrella quite just yet, with the MVNO's parent company, SK Telecom, now calling such speculation ""groundless." An SK Telecom spokesperson further added that it was not in "any sort of talks" with Virgin and that it remains "committed" to Helio, although the company did seemingly leave the door open somewhat by saying it is "actively seeking opportunities" to expand its service in the U.S. Muddling the situation a bit further, Reuters reported on Friday that the two companies were in fact in "early talks" about a deal, although the source behind that story was apparently unable to confirm whether the deal was actually a merger or a purchase, or one of a number of "other possibilities."
Virgin Mobile looking to merge with Helio?
Times haven't been so great at Helio, but it looks like the troubled MVNO could be snapped up by Virgin Mobile. mocoNews did a little digging after Virgin's recent Q1 conference call, and says that the two companies are currently in merger talks. Since both companies use Sprint's network, the tech would be compatible, and the deal would give SK Telecom a way to keep Helio going as it tries to gain a foothold in the US market. Nothing's set in stone yet and the two companies aren't talking, but we'll definitely keep an eye on this one.
Helio will push your Gmail to you -- or any other mail, for that matter
Owners of Helio devices equipped with the MVNO's "Ultimate Inbox" feature -- Ocean, Fin, Mysto owners, we're looking straight at you -- will find that they now have a fun little gem waiting for them. Gmail's now being touted as supporting push notifications right alongside Yahoo!, Hotmail, AOL, and My Helio, but the real trick here is that Ultimate Inbox now supports push for any POP or IMAP account of your choosing. In other words, that "my bad, I haven't checked my email recently" excuse suddenly holds, like, zero weight if you own one of these devices. Sorry!
House bill proposes ban on in-flight cellphone use
This could -- at least temporarily -- put an end the nightmarish scenario involving you, lack of sleep, and some freakish chatty Cathy plopped next to you by the airline. Lead co-sponsor Rep. Peter DeFazio, hopes the "Hang Up" -- madly clever name here -- bill will stop Airlines from finding yet another avenue to gouge you and maintaining peace and harmony by banning any in-flight calling. Of course, the door will remain wide open for SMS, mail, IM, and other types of electronic conversation, but we're hoping Skype and friends are on the muzzle list, too.
Helio Ocean 2 breaks cover, FCC style?
In light of the fact that the original Ocean's model number was OZ, it seems pretty obvious that an "OZ2" passing through the FCC by way of Pantech would be -- you guessed it -- the Ocean 2. It helps that the label diagram's depiction of the phone is clearly Ocean-esque in nature, too. So let's use this opportunity as a springboard for discussion: what does everyone hope to get out of the dual-sliding Helio Ocean's successor?
Put away the hacks: Helio now offering Opera Mini officially
Back in the days of yore, the world was a simpler place. The Helio Ocean had just one browser -- its own -- and if you wanted Opera Mini instead, you got it the old-fashioned way: with hard, manual labor. Times are changing, though, and both Helio and the Ocean are changing with 'em. Opera Mini is now available as a direct download from Helio itself, a nod to the community's desire to have access to what is commonly considered the premier mobile web browser, and maybe -- just maybe -- an admission that Opera Mini is better than the Ocean's integrated app. Whatever the implications, it looks like hitting 67372 from your Ocean's home screen will get the show on the road.
