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story category Earthlink Is Losing Money On Helio Venture
Cell phone service isn't worth its cost
(old news - 02:16PM Sunday Apr 01 2007)
tags: business · wireless
Tipped by fatmanskinny See Profile
Earthlink may be on the cutting edge of testing out Muni-Fi phones, but does the company have any idea what it’s doing in the phone market? Late last year, we reported that Earthlink was “in the red”, due primarily to losses from the company’s cell phone venture, Helio. The Atlanta-Journal Constitution now reports that Helio cost Earthlink nearly $200 million in losses last year and will go out of business unless the company finds new financial backing. Will Earthlink's Wi-Fi knowledge help them to do better with their new venture?

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Forums » Earthlink Is Losing Money On Helio Venture
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Post a:
RadioDoc
58ef2c0
Premium,ExMod 2000-03
join:2000-05-11

Hands up...

Who did not predict this? On paper it may be a neat idea but it is totally void of any viable revenue model.
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Toolmaster of La Grange.

GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast


3 edits

Features extensive; but costs can go up quickly


»www.helio.com/page?p=join&

You also have a pay as you go option, but costs there go up quickly unless you are just making phone calls and not using any of the data services.

But if you are using a lot of data features, the unlimited service may be pretty good. Of course, it all depends on what "unlimited" means in the Helio TOS.

Helio uses Sprint and Verizon for network access.
»news.com.com/EarthLink+mobile+ve···186.html
The phones will use the high-speed data networks, called EV-DO, operated by Sprint and Verizon.

That won't come cheaply, of course. Helio is clear about who it's not targeting--bargain shoppers, pre-paid customers and older subscribers, for instance--and executives say they have closely studied the consuming and lifestyle habits of tech-savvy late teens and twenty-somethings.
So they pay a premium to Sprint and Verizon and they aren't interested in bargain shoppers as customers. That leaves them pretty vulnerable in trying to make a profit and grow their customer base.
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jgkolt
Premium
join:2004-02-21
Lakewood, OH
clubs:

sprint

it is on the sprint network, ill pass
--
www.LakeSemaJ.com

gpidock
Premium
join:2006-12-01
Columbus, OH

Re: sprint

That's the problem with Earthlink. Everything they do is always on another company's network... Another company's infrastructure, another company's engineering, another company's maintenance, and another company's investment.

Boomerang86
Got FUD?
Premium
join:2002-10-18
VampireState
clubs:
·RoadRunner Cable
·VOIPo
·Time Warner VOIP

not surprising

Helio is one of those "who are they?" brands... I have NEVER seen them advertised anywhere but the web. They need a retail presence and marketing to grow and prosper.

At least Amp'd Mobile advertises on cable TV.
--
Life is a journey; death is a given.
xrobertcmx
Premium
join:2001-06-18
Sterling, VA
clubs:

Re: not surprising

I've seen Helio advertise on TV. My girlfriend still watches MTV.
--
Retaking our country one election at a time.

DaveNJ
No Fear

join:1999-09-01
New Jersey
·Comcast
·Patriot Media

GSM Version ?

Helio is loosing because they dont have a gsm version, and its all sprint, which is enough to make people run. At least with a Gsm version, people could use it on more networks, thus more subs. With Tmobile and Cingular they would have a sigificant amount, add dobson, suncom, and alltel. They could even do a euro helio version on 3, or Tmobile UK.

NJxxxJon
something good. or your mom.
Premium
join:2005-10-22
00000

ISP

EarthLink should just stick to be a crappy geico - commercial like ISP. Simple.

kapil
The Kapil

join:2000-04-26
Chicago, IL

Hello. My name is Clue. Nice to meet you.

MVNOs are a losing proposition under the best of circumstances. ESPN and Disney couldn't make it work...and they had money to burn!...Earthlink is doomed.

Helio has entirely too many strikes against it to survive.

Intense competition - from both carriers, including Sprint and other MVNOs.

Price is not competitive - for both airtime and equipment.

Equipment sucks. There are no "cool" phones.

No one wants the add-on features they are selling. - Buddy Beacon? WTF!

Sprint - No one likes Sprint!

Earthlink - No one likes Earthlink.

Obscure brand. Who the hell is Helio? Has anyone ever heard of them? No marketing, no retail presence, no "niche" like the "where you at" crowd targeted by Boost and the white version of that targeted by Ampd and Virgin.

No family or business plans. Family plans are where the growth is.

No free M2M calling to Sprint subscribers.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

1 edit

Re: Hello. My name is Clue. Nice to meet you.

Helio's niche is Myspace. That's where all the ads are for them. Its for the very young generation who loves Myspace.

Also not everyone hates Sprint.

Michieru2
zzz zzz zzz
Premium
join:2005-01-28
Miami, FL

Re: Hello. My name is Clue. Nice to meet you.

Its a popular thing to bash Sprint.

After all they are ones who are deploying EV-DO, WiMAX and other advancements in the wireless communication industry and has invested money into providing a higher quality network.

They even opened up a forum for users can vent their frustrations about the company and have employees who work at Sprint help out customers directly and giving it the information who could do something about it.

Of course its all about getting all for nothing and at a cheap price. Companies waste millions and billions of dollars to make a profit at a price that they can earn at least a small percentage of income off it. Which is why companies will not invest unless you had a solid plan and future goal with a nice backup of companies who will support it if everyone else adds to the piece of the pie.

Companies are just like customers they seek the best price for the best quality they can get, the only difference is that they have cash to burn.

Helio had no major advertisement and was simply living off a already existing network, they just thought that the pretty little blue fire logo and with enough eye candy they could attract a consumer base that simply live off their parents and have at most a bad reputation in handling money.
--
The only limits we have are the one's we set ourselves.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
·Time Warner Cable
·buckeye cable

Re: Hello. My name is Clue. Nice to meet you.

It may be popular to bash Sprint, t at least they're deploying technology.

I think its a good thing for a company to open up their own forum for customers to vent and the company see what customers want and others see what's being done about handling them. It shows they must not be afraid.

As far as Helio having advertisement they for the most part just advertise on Myspace thats it. How do you say has a bad reputation in handling money? Earthlink or Sprint?

Michieru2
zzz zzz zzz
Premium
join:2005-01-28
Miami, FL

Re: Hello. My name is Clue. Nice to meet you.

Teenagers have a bad reputation handling money, most of the people I know are more of a spender than a saver and are not mature enough to hold a few dollars in their hands without spending it.

Which is why if Helio/Earthlink targets this type of consumer base they will not have much revenue and more reporting to credit agencies on those who do not pay.
--
The only limits we have are the one's we set ourselves.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Hello. My name is Clue. Nice to meet you.

Helio is a pay to go service as well. Which means no contract. Same as Cricket/Leap, Revol Wireless, and a few others.

58483323
Gurt me

join:2003-06-23
Normal, IL

Never heard of em...

That's why they're losing money.. I've never even heard of Helio.
brianiscool

join:2000-08-16
Miami, FL

Umm

I think I made the most predictions about this. I WIN! I WIN!
Forums » Earthlink Is Losing Money On Helio Venture


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