Virgin Mobile USA will acquire Helio, the mobile phone operation controlled by SK Telecom and originally launched as a joint venture between SK Telecom and Earthlink. What both brands have in common is a positioning in the "hipper" segment of the youth market, as well as struggling businesses.
Virgin Mobile has more than five million prepaid customers. Helio had a bit fewer than 200,000 postpaid customers at the beginning of 2008.
Mobility, just like wired voice and data, is a scale game. What the industry is seeing is consolidation in just about every segment of the market, in large part to achieve scale. In the global international voice business, margins keep dropping, forcing carriers to sell lots more volume to make up for skinnier margins.
Over time, even the largest global carriers will find they either must bulk up or outsource those operations to carriers that can achieve huge scale.
Wednesday, June 25, 2008
Virgin Mobile to Acquire Helio, Says Financial Times
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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