Helio losses drag Earthlink downTelegeography writes…The US mobile reseller Helio says it ended 2006 with around 70,000 customers and it expects to reach the 100,000 mark by April. The MVNO, which is a joint venture between US ISP Earthlink and South Korean operator SK Telecom, launched services last May and targets the youth market. It says that average monthly revenue per user is at approximately USD100, with roughly a quarter of this coming from data services such as mobile internet access, or game and music downloads. Helio offers services using capacity on the nationwide CDMA network of Sprint Nextel.
The company is expecting losses to increase this year as it ramps up its marketing activities. SK Telecom predicts that Helio’s net losses will reach between USD330 million and USD360 million in 2007, up from USD192 million in 2006, while sales are forecast to grow from USD47 million in 2006 to between USD140 million and USD170 million in 2007. Meanwhile, Earthlink has reported a fourth-quarter net loss of USD24.8 million compared to a profit of USD29.2 million a year earlier thanks largely to costs associated with Helio. The ISP said full-year revenues for 2006 reached USD1.3 billion, up 0.9% year-on-year.
