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Japan Communications launches new MVNO with hardware freedom


Japanese MVNOs aren't exactly novel concepts, but Japan Communications has an angle for its new virtual network that most don't: an interconnect agreement. The deal with provider NTT DoCoMo differentiates it with so-called wholesale MVNOs in that these guys will actually own some of their own infrastructure to hook into the network, which in turn gives them the freedom to offer whatever hardware they choose without NTT's explicit permission to do so. They're really playing up that angle, too, coming out of the gate swinging with a ZTE-sourced broadband dongle -- not exactly the stuff of handset dreams, but they're looking to offer a who's-who of smartphone wares in the future, culminating with a possibly Android offering down the road. Theoretically, that could end up making Japan Communications the first Japanese carrier with an Android set in its midst, but with NTT DoCoMo a charter member of the Open Handset Alliance, the odds are pretty slim.

[Via IntoMobile, image via ITpro]

Virgin Mobile formally seals the deal on Helio acquisition


We know, the little possibility that the whole deal could fall apart has been keeping you wide awake for months, but at long last, you can push aside your anxiety and hit the sack. Virgin Mobile USA announced today that it had "completed its acquisition of Helio," and all of the terms put forth on June 27th were used in the final close. Aside from garnering all the necessary regulatory approvals, Helio shareholders SK Telecom and EarthLink have received 13 million shares of Virgin Mobile USA Class A common stock, with a value of around $38 million. It's also noted that both SK Telecom and Virgin Group will each invest a cool $25 million in Virgin Mobile USA for preferred shares. And then, there was one.

Virgin Mobile USA: profit, ARPU down

The sad part of Virgin Mobile's Q2 earnings story is that it lost customers (to the tune of some 111,000), saw ARPU slide from $20.97 to $19.32 year over year, and watched its profits get halved over the same period to a slim $3.5 million. The happy part? Hey, at least they're in the black, and we're sure they'd rather break even than hemorrhage cash the way virtually all of their MVNO brethren have. At any rate, the company thinks that it'll turn things around heading into '09 with the addition of Helio to its portfolio, which it confirms will be leveraged to offer "new data services and feature-rich handsets" -- both concepts that bare-bones Virgin isn't accustomed to offering in the States. The Ocean 2 would be a nice way to kick off that plan, would it not?

Virgin UK gearing up for laptop data in fourth quarter

Apparently feeling a little celebratory after negotiating lower wholesale rates for voice and data, British MVNO Virgin Mobile has said that it intends to start offering broadband data cards some time in the fourth quarter of the year. In the UK, Virgin operates on top of T-Mobile's wireless backbone, so customers of the new data service should have a pretty nice HSDPA footprint with which to work -- a totally upside-down version of the US picture, where Virgin uses Sprint, offers no data cards (hell, they barely admit the existence of data on their handsets), and rocks CDMA to the core. Weird how the world works sometimes.

Details coming next month on health-focused MVNO LifeComm

Sure took long enough, but it looks like Qualcomm is finally getting around to... uh, getting around to its pet project MVNO that's been on the back burner for the past year or so. The company's CEO says the delays in launching can be chalked up to the fact that it didn't want to be the primary investor in LifeComm; those issues have finally been fleshed out (read: there's money flowing in from other sources) and it'll be announcing a chief along with a concrete business model in September. Details are still exceedingly scarce on exactly what LifeComm intends to do, but it seems that it'll focus on providing specialized phones that help users manage health conditions and / or improve their well-being, and both enterprise environments and individuals will be targeted as potential customers. The MVNO debacle has stretched far and wide the past couple years, yes, but with a unique focus like this, Qualcomm could still have a breadwinner on its hands.

[Via Phone Scoop]

Ikea launches British MVNO

We figure that you've already made ten jokes in your head by now after reading the headline -- you know, about how the phones come in thirty pieces, have diabolical names like "Kramfors," and look like they belong in dorm rooms -- so we're going to spare you and get straight to the point for a change of pace. The furniture empire's UK division has launched an MVNO on T-Mobile's backbone (not to be confused with those little Ikea Mobile kiosks in the US) that follows its sofa mantra to the letter: cheap and simple. It's a prepaid service that requires an initial £10 (about $20) investment, and if we had to guess, the phones themselves are probably about as basic as they come. Would we buy a Samsung "Ektorp"? Hell yeah, we would.

Virgin tells people to get naked for charity, beneficiaries not amused


So all of Virgin's many, many brands tend to have a somewhat quirky sense of humor, and typically, that seems to sit just fine with the company's young (and youthful) target demo. It's par for the course then with Strip2Clothe, a campaign it recently launched to get folks to do their best Elizabeth-Berkley-in-Showgirls impression on camera. The idea was simple, if not a little bizarre: post up your best striptease, and for every five views, Virgin would donate one article of clothing to a network of organizations dedicated to helping homeless youth around the country. Problem is, those organizations were never consulted before Virgin launched the campaign, and some of them weren't terribly pleased with the concept, calling it "exploitative" and "distasteful" among other things. Despite the outcry, Strip2Clothe is still online, with a Virgin rep saying "this issue is really important to us, we've had over 12,000 hits for the site so far, and we want to continue to raise awareness for this important issue." And yes, we know you're going to Google it the second you're done reading this, so don't even try to hide it.

[Via mocoNews]

They're no Ocean 2, but Helio busts out White Mysto and Red Heat


Just because Virgin's scooping up Helio doesn't necessarily mean the product parade needs to stop (not to say it was moving at anything more than a glacial pace to begin with), and to that end, the MVNO has just released its Mysto and Heat models in white and red, respectively. The creatively-named White Mysto and Red Heat are initially available exclusively to the Korean community -- a strategy Helio has used before -- and there's no word on if or when they'll be outed on a wider scale. We would've preferred an Ocean 2 release here, but at the very least, you've got to admit that these new colors suit 'em well.

[Via Heliocity]

Virgin Mobile releases TNT! (their exclamation point, not ours)


If the Arc's a little too rich for your blood, Virgin Mobile's gone ahead and released another handset this week that should fit the bill nicely. The TNT! is a Kyocera-sourced flip with a color primary display, banner-style monochrome secondary display, speakerphone, basic web access, and not much else -- but if you're just looking for a way to blow through some of those prepaid minutes you've got lying around, that's pretty much all you need. It's available now for $19.99.

[Thanks, Mike]

Virgin Mobile rolls out Arc


Virgin Mobile has released the Arc, another in a long, long line of prepaid models designed to keep the upfront payment to a minimum at the cost of a killer feature list. Still, though, the UTStarcom-sourced flip makes out with Bluetooth, dual color displays, and a VGA camera for its $49.99 asking price, and the red / black color combo doesn't look half bad. We'll have a closer look at the Arc in the next few days, but if you simply must have one now, they're on sale immediately.

[Thanks to everyone who sent this in]

Two years and half billion later, Helio sells for a song. But why?


Money-losing companies with interesting technology and a small, if rabid, customer base still frequently tend to sell for healthy chunks of change -- especially in the wireless space. Look at Trolltech, for example, the mobile Linux company that never really made any money, yet somehow managed to be acquired by Nokia for its talent and IP, which apparently carried a value of over $150m. We know Helio was burning cash on a whole 'nother level, but that doesn't entirely explain why SK Telecom was so absurdly desperate to dump their $500m investment. At a $39m acquisition price, SK didn't just lose its shirt -- it lost that, the shoes, and then the pants. You know, the pants with a half-billion dollars in them.

Continue reading on Engadget

Virgin Mobile to buy Helio for $39 million in equity


It's official, MVNO lone survivor Virgin Mobile is picking up the struggling Helio from SK Telecom and Earthlink for a cool $39 million in Virgin Mobile USA stock. They expect the deal to close in Q3 2008, pending regulatory approval. The acquisition comes as no surprise, but it's still sad to see the one true innovator in a mostly doomed MVNO space fall to that pesky little "completely failing to make money" thing. The good news is that it while the Helio brand will be phased out, Virgin Mobile isn't just in this for the 170,000-ish subscribers it'll be picking up. They plan to leverage Helio's technology and content offerings, not to mention the willingness of its customers to pay a few extra bucks for the perks, to build the Virgin Mobile brand into new spaces -- spaces which hopefully prove profitable and Ocean 2-ey.

Helio stores shutting down


The future of Helio is still up in the air -- one minute it's about to be sold to Virgin, the next the Ocean 2 is popping up in videos -- and it looks like this week will end with some equally ambiguous news: Helio stores appear to be shutting down. That's the word according to Fierce Wireless, which took this shot of a Helio store in Denver with a sign in the window that reads "The Helio Store is closed. Contact their customer support." Hmm, that sounds like some part of Helio is going to keep running -- hopefully we'll find out how this soap opera ends sometime soon.

Ads-for-minutes model marches on: Blyk expanding to three more countries

The concept of exchanging voice minutes for obligatory ads pushed to handsets is a business model still very much in its infancy, but Blyk -- which currently has a live MVNO in the UK and plans to launch in the Netherlands later this year -- must be feeling good about its chances right now, because it has announced a planned expansion into the German, Belgian, and Spanish markets next year. Key to the service's success is recognition by advertisers that customers actually give a crap about the highly-targeted marketing material being pushed to them; Blyk claims that click-through rates are rockin', which is probably providing the impetus for the planned expansion. We're still not so sure we'd trade 217 text messages and 43 voice minutes a month for the privilege of being blasted with spam targeted promotions, but if they're somehow able to boost the allowance into the range of a typical plan and maintain profitability, they could be sitting on a gold mine.

[Via mocoNews]

Helio sale to Virgin Mobile could happen this week?


Do you hear that, Helio? That [cue Sir Richard Branson's soothing voice] is the sound of inevitability. Rumors have been swirling for a few weeks now that SK Telecom -- Helio's majority owner -- is getting ready to cut, run, and offload its share to Virgin Mobile, rolling the scrappy MVNO into the one and only virtual network in the US that's been met with substantial, quantifiable success (more recent stock woes notwithstanding). Now, the Financial Times is reporting that a deal is cued up and ready for a public introduction as early as this week. The sooner, the better, because tons of questions remain about the fate of subscribers and the introduction of the pretty hotly anticipated Ocean 2, a device that at one time could've been Helio's savior; too late for that now, we guess.




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