Helio has sold to Virgin Mobile USA for $39 million.
The purchase combines Virgin Mobile's 5.1 million customers with Helio's base of 170,000 subscribers.
By: Dan Stewart
Jun 28, 2008 19:53 PM GMT
Virgin Mobile said Friday that it will pay $39 million in stock for mobile phone carrier Helio, which has 170,000 subscribers.
Moreover, Virgin Group and SK Telecom, the South Korean carrier that is majority owner of Helio, will each invest $25 million in Virgin Mobile. That will give SK Telecom a 17{newtextlinks}take in the mobile phone company.
Virgin Mobile said it will continue Helio's advanced data services and its customer-service plans.
However, critics say Virgin Mobile reported net customer additions fell 94-1077240460uring the first quarter. The mobile company continues to be hard hit by the economic downturn. Helio has struggled to turn a profit and increase its own customer base. Its phones - a strong suit of the company - have lagged behind rivals such as Apple Inc's iPhone.
At the end of March, Virgin Mobile had 5.1 million customers, making it one of the largest mobile network operators in the US.
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