Helio Controlling Stake Goes to SK Telecom |
| Print | |
| Written by Administrator |
| Monday, 12 November 2007 02:01 |
|
The MVNO arena has taken on a new partner, as SK Telecom announced that they will take a controlling stake in Helio Wireless. The move will push Earthlink out of their controlling stake in the company, and signals the first time the MVNO has been given any type of outside financing.
{mosgoogle} SK Telecom and Earthlink had both announced in July that they would spend upwards of $100 million dollars a piece, in order to turn around their profit lossing wireless division. After sales have continued to create losses SK Telecom announced they will now spend $200 million dollars. According to the company that money will go towards expanding Helio's user base, and towards the development of new handsets for Helio customers, an important area for Helio, as they are one of the few MVNO's to offer custom handsets for their users, handsets that often receive rave reviews from Critics and users alike.
SK Telecom, a Korean company, is not new to large investments in the Telecom industry, they have invested over $1 billion dollars in their South Korean market, capturing over 50% of the business in that area. |