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Helio, Virgin Mobile USA in Merger Talks

May 8, 2008, 1:51 PM by Eric M. Zeman

MVNOs Helio and Virgin Mobile USA have indicated that they are in preliminary merger discussions. Both MVNOs have faced difficulties in making subscriber gains. SK Telecom, which owns a controlling share of Helio, has been considering what to do with the small player. Since both MVNOs run on Sprint's network, there is some common ground for them to build a relationship on. Because the talks are in such early stages, both companies are still weighing a number of options.

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Comments

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This forum is closed.

SprintNextelUSA

May 8, 2008, 3:10 PM

What about Sprint Nextel?

Sprint Nextel owns about 50% of Virgin Mobile. I wonder what they have to say about this? 🤨 Maybe they should sell off their half of Virgin Mobile.

nextel18

Given all the problems that are facing Sprint now and the lack of success for VM so far, I bet they do not care what happens to them as long as they all turn around their operations.

AlltelHub

Probably not much. Virgin Mobile inherited what, less than half a million customers? Seems like MVNOs never stand on their own long.

algorithmplus

Maybe Sprint Nextel would sell its share of Virgin Mobile to SK Telecom or Helio.

Versed

May 8, 2008, 7:50 PM

The Difference

The main difference is that Sprint will own a big chunk if not controlling interest of this merger. Sprint (Outside of Boost) doesn't have a pre-paid plan under their name.

Being sold in Sprint Corp and Dealers can help. In anycase while this is an MVNO, it really isn't the same as stand alone MVNO's.

From what I understand Virgin Mobile does have a good reputation.

SprintNextelUSA

I think that Sprint owns 50% of VM and the rest by Virgin Group. SK Telecom owns the controlling share of Helio, while Earthlink owns the minority share of Helio. It seems that SK Telecom will own the controlling share if VM and Helio merges together....
(continues)

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