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story category EarthLink Backs Away From Helio
Finally realizing that it's sucking them dry
(old news - 02:09PM Saturday Sep 22 2007)
tags: business · wireless · EarthLink
Tipped by TK Junk Mail See Profile
Earthlink’s financial woes have been due in large part to their MVNO, Helio. Despite the fact that Helio is gaining subscribers, the venture is expected to lose approximately $350 million this year. EarthLink is finally waking up and realizing that maybe the solution isn’t to fire employees but rather to cut itself loose from Helio. EarthLink hasn’t said that it’s backing off of Helio completely but they are going to be re-working their agreement with joint venture partner SK Telecom to make the other company the majority shareholder in the venture.

Related:
  1. EarthLink a no-show at Philly Wi-Fi hearing
  2. Earthlink Lost $80 Million On Muni-Fi Last Year
  3. Corpus Christi Finally Gives Up on Earthlink
  4. 2 out of 5 Cities Take Wi-Fi Back from Earthlink
  5. New Orleans Opts To End Wi-Fi Network
  6. Earthlink Threatens To Shut Down Philly Wi-Fi
  7. Earthlink Closing Philly Wi-Fi Network June 12
  8. Earthlink Free Of Money Pit Helio -- Now What?
Forums » EarthLink Backs Away From Helio
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Post a:
jc100

join:2002-04-10
·RoadRunner Cable

Ummm..

Reworking their venture. In political speak, we'll keep shelling out more money for your lost cause, just our name won't be the one everyone sees. In the mean time, we'll continue to lay off more employees so we can foot this bill. How's another 10,000 sound? Let's face it, SK Telecom probably wants to liquidate their claim too. I hardly see them jumping at the opportunity to buy a greater stake in a lost cause. Then again, this is the business world where dumb leaders make bad decisions every day.
Killthee

join:2002-09-09
Los Angeles, CA

Re: Ummm..

said by jc100 See Profile :

Reworking their venture. In political speak, we'll keep shelling out more money for your lost cause, just our name won't be the one everyone sees. In the mean time, we'll continue to lay off more employees so we can foot this bill. How's another 10,000 sound? Let's face it, SK Telecom probably wants to liquidate their claim too. I hardly see them jumping at the opportunity to buy a greater stake in a lost cause. Then again, this is the business world where dumb leaders make bad decisions every day.
Huh? SK Telecom is investing $270 million more into Helio. Furthermore, they're renegotiating their stake in Helio with Earthlink.

»www.engadget.com/2007/09/21/sk-t···o-helio/
jc100

join:2002-04-10
·RoadRunner Cable

Re: Ummm..

Ok let me rephrase this, SK Telecom has bad leadership then. O well, idiots and morons are born every minute. Trying to save Helio is like trying to feed all the starving kids of the world. As good as your intentions might be, in the end you come out spending a lot of money, and more kids will still be left starving no matter what you do. Cruel but true. In this case, SK is throwing good money after bad, and it's going to solve nothing.

TK Junk Mail
Go ahead, make my day
Premium
join:2002-03-03
Margate City, NJ
clubs:
·Comcast

Earthlink suffering from a scattershot business plan

Earthlink is in the trouble it is because when their old dial-up business plan started to come apart their response was to get in to all the areas NOT covered by the old Bell companies. So they jumped in to MVNOs, WiFi, reselling broadband, etc. But they didn't get in to any 1 of these with both feet. They dabbled in many areas and hoped that a reputation for good customer service would get people to pick them over the leaders in each of the areas they were moving in to. The result - the only reason they existed(better customer service) started to suffer from a lack of knowledgeable staff and the fact that ultimately the quality of customer service depended on the underlying companies they were reselling.

AOL had the same problem, but at least they had a Web Portal(and the advertising dollars that brings) to fall back on. And that is where they decided to concentrate their efforts. Earthlink had no such capability or source of ad dollars. I believe Earthlink is dying and whatever remains of it will be broken up and grabbed by other companies.
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batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
clubs:
·Verizon Online DSL

Prepaid is becoming the new long-distance.

The big carriers have allot of excess capacity. Resellers are selling minutes for as little as 7 cents on Verizon’s network. Also the big three are getting into prepaid with T-Mobil selling minutes for 10 cents. With bonus codes and knowing where to buy cards I can get minutes from TracFone for less than 5 cents. I have TracFones on at&t and Verizon and get a Cadillac ride for a Yugo price. All of this is done without the government forcing The Phone Companies to resell the service. EarthLink will go the way of AT&T and become part of at&t.
hottboiinnc
Kyle

join:2003-10-15
Toledo, OH
·buckeye cable
·Time Warner VOIP
·1and1

Re: Prepaid is becoming the new long-distance.

Also don't forget T-Mobile's new FlexPay service. Same feature as a regular account under contract but with the option to pay monthly without a contract price; get 300 minutes, Fav5 and everything else for $40 per month (rounded number) with again- no contract. The only thing you do is buy the phone ($50 at Wal-mart or Target; when getting a prepaid phone) and having it activated under FlexPay in person or on the phone and paying the one month of service up front.

Prepaid may slowly become this service with large companies such as; Verizon and Alltel. AT&T already has it (GoPhone).

fatmanskinny
Premium
join:2004-01-04
Atlanta, GA
·Comcast Digital Vo..
·Comcast
·EarthLink

Rumor has it...

EarthLink is either going to be gobbled up by another company or buy another company (they are looking at Covad) in Q1 2008.

Got this from an internal source.
--
The only place where Success comes before Work is in the dictionary.
vinnie97

join:2003-12-05
Mesquite, TX

Re: Rumor has it...

Covad's a good choice. The home phone/ADSL2 service they offer in conjunction with Earthlink could serve as the coming residential Covad ADSL2 service.

jimbo48

join:2000-11-17
Hayward, CA
·EarthLink

Where is ELNK going to get qualified people to run the COVAD portion?
But then this is just rumor mill speculation. I sure don't relish the idea of ELNK being "gobbled up" and having to re-provision with yet another ISP that "stretches the truth"
hottboiinnc
Kyle

join:2003-10-15
Toledo, OH
·buckeye cable
·Time Warner VOIP
·1and1

Re: Rumor has it...

Since when do you have to be qualified to know how to outsource tech support and most of your operation that the customer's interact with? Covad already out sources tech support and Customer Service. No problem there. Just now need the in house techs that are in the states. No problem keep the ones they already have.

inteller
Sociopaths always win.

join:2003-12-08
Tulsa, OK
·Cingular Wireless

MVNO Koolaid doesn't taste good anymore?

I predicted this. MVNOs just don't work...PERIOD. Look at the list of utter failures. Even Virgin Mobile eeks by, and they would have tanked had they not been the first ones to enter the market when Sprint didn't have a good pre-pay option.

Just add Helio to the scapheap along with ESPN mobile and Amp'd. I say migrate all of these users to Boost, then spin off that unit into its own company and merge it with a good collection agency to deal with its bum users.
--
"WHEN THE LAUGH TRACK STARTS THEN THE FUN STARTS!"
hottboiinnc
Kyle

join:2003-10-15
Toledo, OH
·buckeye cable
·Time Warner VOIP
·1and1

Re: MVNO Koolaid doesn't taste good anymore?

What's a "good" collection agency going to do that any other can't? Nothing. The only thing they may be is call you and drive you nuts but it won't stop the customer from doing it again or just changing their phone numbers; making them private or using Vonage; number's arent put in under your name on caller ID in most cases, and they don't even list you in the phone book or anything else; the agency will just be spending more money trying to locate the people or trying to get money out of someone they will never actually deal with.
ncbill
Premium
join:2007-01-23
Winston Salem, NC
Prepaid MVNOs like Tracfone do just fine.
Forums » EarthLink Backs Away From Helio


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