Home » Uncategorized » Helio already suffering financial woes
Image_36899_tmimage.jpg

Helio already suffering financial woes

The upstart MVNO has barely gotten its bearings, but word is that Helio is already going through some financial trouble. The joint venture set up between SK Telecom and Earthlink was designed to provide users with higher-end multimedia mobile phones (like the powerful Helio handset) in a package that was fun and affordable.

It turns out it costs the company “300 dollars to sign up each new subscriber”, and as such, it will take them quite some time before they can recoup that expense. Because part of Helio’s appeal is high speed data, SK Telecom and Earthlink invested heavily into using Sprint’s EV-DO networks, as much as 50% of the initial cost, in fact. It cost the companies a total of $440 million dollars to get off the ground, with the two partners going Dutch on the deal – to speak – splitting the bill down the middle.

Well, they’re running out of funds (if they haven’t already) to establish their sales networks, and they’re turning back to the parent companies for more. According to one source, “The problem is that the parent companies are likely to be reluctant to additional financial inject even before the launch of the service (sic).”

About Michael Kwan

A freelance writer and tech geek from Vancouver. Find me at michaelkwan.com and follow me on Twitter @michaelkwan.

Check Also

wii-oculus-rift-hoverboard

Try Oculus Rift And Wii To Roam Around On The Back To The Future Hoverboard

Check out how you can fly in virtual space by using an Oculus Rift and a Wii Balance Board.

131129-amz

Amazon Appstore for Android Holiday Deals, Including Free Apps

There are tons of deals from the Amazon Appstore that will be offered starting now and throughout the holiday shopping season. They say that they will have "hundreds of titles that are eitehr free... or available between 50-90% off" the regular price.

131129-google

Black Friday: Google Play Store Apps, Games and Content on Sale All Weekend

Case in point, if you head over to the Google Play Store right now, you'll find that Google is celebrating all Cyber Weekend with discounts on all sorts of content. This includes many popular apps and games

131129-gtab

Black Friday Deal: Samsung Galaxy Tab 3 10.1-Inch for $100 Off

Did you manage to score any epic Black Friday deals this morning? Are you still ...

131128-diy

Arduino Co-Creator Releases Plans for $200 DIY Mobile Phone

Mellis was one of the people who came up with the now hugely popular Arduino platform and now he has come up with plans for people to build their own cell phone for about $200 in parts.

131128-apple

No Discounts for Apple Black Friday, Just Free Gift Cards

If you were hoping to save yourself some cash as you brave the Black Friday shopping crowds, you'll want to go somewhere other than the official Apple Stores.