EarthLink opts out of Helio funding

25 Sep 2007

Struggling US internet service provider EarthLink has opted not to pump additional funds into its mobile virtual network operator (MVNO) subsidiary Helio, despite its partner in the venture, South Korea’s SK Telecom, recently announcing a new investment of USD270 million. EarthLink says it will not be investing any more in Helio ‘for the time being’ and says that it is in negotiations with SK Telecom over the ‘future governance’ of the firm. The ISP has not confirmed, however, whether or not it is looking to downsize its stake in Helio from the current level of 50%. Helio had 130,000 subscribers at the end of August and is aiming for between 200,000 and 250,000 by the end of the year.

United States, EarthLink, SK Telecom (SKT)