Helio’s Hard Times
Credit: Toby Pederson

I had the chance to visit the Helio headquarters in Westwood, CA, last year to write this feature story on the company’s ambitions. Now comes news that Virgin Mobile USA is buying Helio for $39 million, making for an impressive burn rate on the $710 million invested in Helio by Earthlink and the Korean phone giant SK Telecom over three years. (The companies’ initial joint investment of $440 million, which I reported in the feature, was followed by a $270 million infusion from SK Telecom.) Both Virgin Mobile and Helio had been small players in the mobile markets, buying capacity on the Sprint Nextel networks to run their businesses. Helio’s offerings will remain available from Virgin Mobile.
Helio was ahead of conventional American tastes, offering high-end, do-it-all services and devices for the mobile Web. It broke ground with all-inclusive data plans, integration with sites like MySpace and YouTube, and unified e-mail interfaces. Of the many statistics the company loved to toss around, one stood out: 95 percent of Helio users actually accessed the Web from their Helio gadgets. (The rest of us mainly use our cell phones for voice calls or text messages; only 13 percent pay for Web features on mobile phones.)
But while Helio’s most ambitious device, the Ocean, was mechanically interesting, it may have been too much so. It had dual sliders and a full Qwerty keyboard, and its beefy size recalled that of an eyeglass case. But the Ocean was in development at the same time that Apple was secretly developing its own do-everything gadget. The sleek, touch-screen iPhone launched around the same time as the Ocean, and the rest is history.
Deep Dive
Uncategorized

It will soon be easy for self-driving cars to hide in plain sight. We shouldn’t let them.
If they ever hit our roads for real, other drivers need to know exactly what they are.

Maximize business value with data-driven strategies
Every organization is now collecting data, but few are truly data driven. Here are five ways data can transform your business.

Cryptocurrency fuels new business opportunities
As adoption of digital assets accelerates, companies are investing in innovative products and services.

Where to get abortion pills and how to use them
New US restrictions could turn abortion into do-it-yourself medicine, but there might be legal risks.
Stay connected

Get the latest updates from
MIT Technology Review
Discover special offers, top stories, upcoming events, and more.