Posted: Jun 20th 2008 4:44PM by Chase Higgins
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Helio on its way out
Posted: Jun 20th 2008 4:44PM by Chase Higgins
It is hard out there for an MVNO for sure, but Helio despite its recent troubles has always seemed like it is one of the more stable ventures. That said, it seems as if the heat is leaving the fire for Helio, and they are all but dead. After being more than half a billion dollars in debt, Helio is calling it quits, and axing stores and retail outlets across the country. Virtually every MVNO has failed, and with Virgin Mobile taking over the troubled carrier, it seems they are all that is left. It is unclear if Helio customers will be able to keep their current phones, or their plans. It was a good run, and in its prime, Helio was a force to be reckoned with.
Posted: Jun 20th 2008 4:44PM by Chase Higgins
3 comment(s) on this post
Asif Ahmed said:
Helio is actually going very strong and June was one of the best performing months so far. Helio will be launching the Helio Ocean 2 the most anticipated device of the year. http://www.ocean2promo.com The move to eliminate the direct distribution channel is to comply more in regards to how Virgin Mobile operates. As you can see Virgin Mobile has zero direct distribution and all indirect. If you check Virgin's business plan you will see that the business model is based on spreading the distribution costs to the indirect channel. This allows the MVNO to ride out economic downturns as the indirect channel absorbs most of the cost while allowing the MVNO to carry on being a margin player. This is very different then the Helio model and works on a cost plus basis where Virgin makes money on the difference between the wholesale rates and what is charged by the customer. This will be a great addition to Helio's model where they make money on exclusive value added services. It has been two years now that everyone has written out Helio and Helio is still here and thriving. Asif Ahmed Helio Wireless | Tysons Corner http://www.heliobusiness.com
Chase Higgins said:
Thank you very much for the insightful comment. I am personally a fan of Helio and I really do hope they can pull it out, it is just not looking good at the moment.
Galvatron said:
but they all lease ther airspace from sprint im betting thats the only real way sprint is staying in the black now only if qworst wireless would shrivel up and die