EarthLink, which has been struggling with its investments in muni-WiFi and MVNO Helio, has indicated it won't invest anymore in Helio for now and revealed that partner SK Telecom will invest an additional $270 million in the MVNO.
Helio, founded in 2005 and launched last year, is spending a lot of cash as it ramps up operations. It is expected to lose between $340 million and $360 million this year, according to EarthLink. Last month to ISP let go 900 employees [1] amid steep losses in the second quarter [2].
For more about SK Telecom's additional investment:
- read this article [3] from IDG News Service
Related articles:
EarthLink struggling [4] with wireless initiatives
Report: New Earthlink CEO [5] could cut Helio
EarthLink CEO [6] devoted to Muni Wi-Fi and Helio
Helio's struggles [7] show risks of serving niche markets
Links:
[1] http://www.fiercebroadbandwireless.com/story/earthlink-ends-900-jobs-bails-out-san-francisco/2007-08-30
[2] http://www.fiercewireless.com/story/de-ja-vu-helio-weighs-down-earthlink-earnings/2007-07-27
[3] http://www.infoworld.com/article/07/09/21/EarthLink-stops-funding-Helio_1.html
[4] http://www.fiercebroadbandwireless.com/story/earthlink-struggling-wireless-initiatives/2007-07-30
[5] http://www.fiercewireless.com/story/report-new-earthlink-ceo-could-cut-helio/2007-06-26
[6] http://www.informationweek.com/hardware/showArticle.jhtml?articleID=201802970
[7] http://money.cnn.com/news/newsfeeds/articles/djf500/200709211405DOWJONESDJONLINE000679_FORTUNE5.htm