MVNOs

Helio losses grow, but so do revenues

Fri, 29 Feb 2008 06:59:59 -0500

Mobile virtual network operator Helio continues to hemorrhage cash … but on the bright side, its 2007 revenues increased 264 percent over the previous year. In its annual report to the SEC, Internet service provider EarthLink, which launched Helio in conjunction with Korean mobile operator SK Telecom, notes Helio lost $327 million in 2007 against $171 million in revenue; a year ago, the MVNO posted losses of $192 million on $47 million of revenue, which combined with 2005 losses of $42 million means Helio has now posted total losses of $560 million in three years. Helio ended the fourth quarter with slightly more than 180,000 subscribers, a 28 percent increase over Q3 totals. But while revenue still exceeded Helio's $140-$170 million guidance, and losses fell shy of its $340 million to $360 million guidance, EarthLink admits in the SEC filing it "may not realize the benefits we sought from our investment in the Helio joint venture."

The EarthLink filing goes on to note "We have made $210 million of cash investments in Helio. The financing of Helio's operations has adversely affected our cash position. In addition, Helio will require additional funding in the future and Helio has incurred losses and we expect Helio to continue to incur losses. In addition, Helio may not be successful in implementing and marketing its wireless voice and data initiatives, and there can be no assurance that these initiatives will be commercially successful. We cannot assure you Helio will be able to achieve or maintain adequate market share or revenue or compete effectively."

For more on Helio's 2007 results:
- read this Silicon Alley Insider article

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Helio gets Buzzd
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Helio gets Buzzd

Wed, 06 Feb 2008 06:59:58 -0500

Mobile virtual network operator Helio announced an agreement which local entertainment service provider Buzzd, which provides real-time, location-based information for area bars, clubs and restaurants. Spanning events and venue in all major U.S. cities, Buzzd features editorially-driven information aggregated via partnerships with Flavorpill, TimeOut New York and CitySearch as well as user-generated reviews and ratings from friends and other Buzzd community members--the service also enables subscribers to find and message friends. "The partnership is exciting as both Helio and Buzzd are using mobile technology to connect people with local entertainment around them," said Buzzd co-founder and CTO Deepen Shah in a prepared statement.

For more on the Helio/Buzzd deal:
- read this release

Related articles:
Sky Dayton resigns as Helio CEO
SK Telecom pumps another $270M into Helio
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming

Sky Dayton resigns as Helio CEO

Tue, 29 Jan 2008 06:59:58 -0500

Mobile virtual network operator Helio announced that founding CEO Sky Dayton has resigned his post, with president and COO Wonhee Sull named as his replacement. Dayton was appointed non-executive Chairman of Helio's Board of Directors. The company said he will remain actively involved in shaping its strategy and initiatives. "Helio has reached a point in its development where I feel the timing is right for this change," Dayton said in a statement.

Dayton's move will no doubt further speculation that EarthLink (the ISP he founded in 1994) is planning to sell its stake in Helio, which it launched in association with Korean operator SK Telecom. Last fall EarthLink president and CEO Rolla Huff reiterated the company's commitment to Helio: "I think that the investment that we've made there absolutely has value," Huff insisted at the time. "We have no plans to go out and sell it. It's a growing business. It's a business that we support."

In announcing Dayton's resignation, Helio also reported usage statistics for its nearly 200,000 subscribers, claiming an ARPU of $85 and a 2007 revenue run rate of over $240 million based on December actuals. Helio also reported:

An average of over 550 text messages per member per month
95 percent of subscribers access the web via mobile device
Each month, 60 percent of subscribers access MySpace via Helio and average nearly 500 page views
In December, subscribers uploaded photos from their device to the web at a rate of five times the industry average
57 percent of Ocean users downloaded Helio's exclusive YouTube application within two weeks of its launch

For more on Dayton's resignation:
- read this release

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SK Telecom pumps another $270M into Helio
Helio squashes rumors of massive layoffs
Helio to succeed where Mobile ESPN failed?
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming

Helio debuts feature-rich YouTube service

Wed, 12 Dec 2007 06:59:58 -0500

Mobile virtual network operator Helio announced a new YouTube application it is calling "the most comprehensive YouTube experience currently offered on mobile," promising integrated video capture and upload for near real-time sharing, GPS tagging, personalization and community features like rating and commenting. Available free for Helio Ocean users, the custom YouTube app also enables subscribers to view tens of millions of videos, save and share favorite clips, and access their own video feeds. "This is the closest thing to the YouTube web experience available on mobile today," said Helio VP of media and community services Rob Gelick in a prepared statement. "With the ability to do things like GPS tagging and posting video responses right from a device wherever you happen to be, it brings new possibilities to the YouTube world."

For more on the Helio/YouTube partnership:
- read this release

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Can carriers morph into media companies?

Tue, 30 Oct 2007 08:00:00 -0400

As I met with operators and listened to panel discussions at the CTIA Wireless I.T. & Entertainment show in San Francisco last week, I had the sneaking suspicion there are still a few mobile operators harboring dreams of being content companies in addition to being wireless carriers.

You'd think that dream would have been crushed by the downfall of Amp'd Mobile, the mobile virtual network operator that filed for bankruptcy and shut its doors earlier this year. Amp'd, as you may recall, envisioned itself as a content provider. The MVNO spent lots of money building a studio in Los Angeles and developing original content. While it had some success with programming such as Lil' Bush, which started as a series of short-form episodes available exclusively on Amp'd Mobile. It was quickly picked up by the Comedy Channel for extension to a much larger TV audience, but Amp'd was never able to prove that the original content strategy worked. In the end, the MVNO filed for bankruptcy and it was revealed that nearly 80,000 of its 200,000 subscribers weren't paying their bills.

So why would Sprint decide to pursue the original content strategy? Sprint announced earlier this month the launch of SEE (Sprint Exclusive Entertainment), a new mobile TV network comprised solely of original programming. SEE, along with its production partner Intersport, will produce brief on-demand clips featuring on-air personalities such as former NFL MVP running back and current NFL Network analyst Marshall Faulk, sports mega-agent Drew Rosenhaus and onetime VH1 VJ Rachel Perry.

I'm surprised Sprint would make this move now, especially when the market for original programming hasn't been proven. According to a recent Yankee Group report, "Recognizing the 10 Myths: A Mobile Entertainment Intervention," one of the biggest fallacies among mobile operators is that they should be media companies. According to The Yankee Group, 15.3 percent of respondents to its consumer survey said they were interested in paying for the same content they already enjoy at home. That small number, according to the consultancy, is tempered by the fact that most respondents (67.8 percent) said one reason for not adopting mobile video was the additional monthly fee. Yankee Group says that instead of pursuing original content strategies, carriers need to recognize that entertainment is entertainment and consumers want what they know and like.

Verizon Wireless is following the Yankee Group's advice. During a conversation with Lowell McAdam, CEO of Verizon Wireless, he said there are a lot of smart people out there who know how to do content and Verizon would rather let them do it than try to produce content itself. "We are good at building networks and building distribution. We are good at customer service and product development," McAdam said. "[Content] is one aspect of product that I would rather go do a deal with whatever the hottest content is rather than try to be on the leading edge. That's not a skill set for us."

I think McAdam has the right perspective. Carriers should do what they do best--run networks. And let the entertainment companies develop mobile entertainment. -Sue

P.S. On Nov. 1 at 2 p.m. EST, I'm hosting a webinar, "Behind the Scenes at the CTIA IT Show--What's Hot? What's Not?" My special guests include Yankee Group's Linda Barrabee and Andy Seybold of Andrew Seybold Inc. We will be talking about the stories-behind-the-headlines and key trends from the show. Please join us, we've set aside plenty of time for your questions. Register here.

Helio inks HD content deal with KushTV

Mon, 08 Oct 2007 06:59:57 -0400

Mobile virtual network operator Helio announced a partnership with multi-platform, high-definition content network KushTV to distribute original made-for-mobile series including The Loc Dog Show, Perfect Picks, Beverly Hills Confidential and Ya Boy--Road to Riches. The KushTV short-form, reality-based programming lineup debuted the summer, quickly earning a fan following via MySpace--in addition to Helio, the network presently boasts branded channel partnerships with Joost, YouTube, and Akimbo. Additional high-def programming is scheduled to debut in the upcoming months. "Helio's audience is indicative of where mobile content is heading and we believe that our relationship with Helio will help redefine the experience for mobile content in a growing market," said KushTV co-founder Aaron Justin.

For more on the Helio/Kush TV deal:
- read this release

Related articles:
Read about SK Telecom's $270M cash dump on Helio
Helio squashes rumors of massive layoffs
Helio to succeed where Mobile ESPN failed? Read why here
Helio adds online content, feels the Heat
Helio reveals plans, partners for mobile gaming

FEATURE: On the Hot Seat with Douglas Craig

Fri, 17 Aug 2007 06:59:49 -0400

Discovery Mobile's content can be found through a variety of channels. The firm's streaming video content can be found on Sprint and through MobiTV and its video-on-demand clips can be found on Alltel, Helio and Verizon Wireless. Discovery's Vice President of New Media Douglas Craig recently talked with FierceMobileContent Editor-in-Chief Sue Marek about repurposed vs. original content, consumer mobile video viewing habits and the business model for this innovative form of entertainment.

FierceMobileContent: Mobile virtual network operator Amp'd Mobile recently filed for bankruptcy and sold its assets to Prexar Mobile. Amp'd offered Discovery Mobile content to its subscribers. Is this a big loss for Discovery?

Craig: It's a short-term issue for us. We would have liked to see Amp'd succeed. As an industry, we learned a lot about what they went through. We're still bullish on mobile and we still think the growth is there. We look at this as a short-term loss. We are confident we will make up for it.

Click here to read the rest of the interview...

A Best-case scenario

Fri, 13 Jul 2007 07:00:00 -0400

The Wall Street Journal this week reported on electronics giant Best Buy's expansion of its mobile phone sales and services, an initiative to increase the number of handsets and carrier services available at its 841 locations across the United States. According to the Journal, Best Buy owns a 20 percent market share in consumer electronics and a 25 percent market share in IT products, but claims only 2 percent of the mobile phone market, selling roughly three million handsets a year. The retailer's response: Team with European retailer and mobile virtual network operator Carphone Warehouse to launch Best Buy Mobile, a series of stand-alone stores offering some 90 different mobile phone models as well as plans from carriers including AT&T, Verizon Wireless, Sprint, T-Mobile, Virgin Mobile USA and Boost Mobile. The strategy also prompted Best Buy to institute new and improved training policies, educating its staffers on the nuances and complexities of the mobile user experience.

Assuming Best Buy Mobile pans out, the next logical step would be a branded MVNO of its own, an intriguing possibility to say the least. The idea of a retailer-owned MVNO is nothing new, of course--in addition to Carphone Warehouse, Wal-Mart Germany launched Mango Mobile in early 2006, and rumors of a Wal-Mart MVNO targeting the U.S. market have circulated for years. But as a brand virtually synonymous with personal electronics and media content, Best Buy seems far better positioned to offer a total one-stop shopping mobile experience, especially if its Best Buy Mobile training efforts yield a knowledgeable on-site support staff. Factor in the branded music download service launched in October as well as a rumored movie download service (confirmed by loose-lipped Lionsgate Films CEO Jon Feltheimer in a conference call last month), and Best Buy is seemingly poised to capitalize on virtually every segment of the mobile value chain.

What's most fascinating about a potential Best Buy MVNO is that it would test the power of brand recognition, not the brand affinity so long championed by MVNO advocates. Everybody knows Best Buy and what they do--each location is virtually identical to the next, with only minor differences in inventory and layout. You go there if you want a standard-issue PC, digital camera or DVD title. Shopping Best Buy for wireless phones and services, not to mention ringtones, video downloads and mobile games, doesn't require any real leap of faith in the mind of the average consumer. But it's tough to imagine anyone feeling genuine affinity for Best Buy for the same reasons--it's a homogeneous shopping experience controlled by a featureless corporate entity … like, you know, AT&T or Verizon. Mobile ESPN was sold on the basis of sports fans' personal connection to the ESPN brand and its on-air personalities, and look how that turned out. Nobody needs to love their mobile operator, or even like them very much. The Best Buy model--bland, reliable and ubiquitous--seems like the way to go; in other words, maybe facelessness is the new face of the MVNO. - Jason

Telcordia, mPortal team on MVNO content solution

Sun, 22 Apr 2007 20:01:38 -0400

Telecom software and services provider Telcordia Technologies announced a partnership with mobile content and applications provider mPortal, bolstering its hosted services for MVNOs with mPortal's Springboard content delivery manager platform and related content catalog. Promising its MVNO customers an efficient and cost-effective solution for launching mobile content services, Telcordia will also add mPortal's smart client, which resides on subscriber handsets to improve content access and discovery.

"The partnership with mPortal helps us broaden our hosted services offer," said Telcordia's executive director of global solutions marketing Patrick McCarthy in an interview with FierceMobileContent. "The more we can put in the tin, the easier it is for MVNOs to work with us."

Telcordia now boasts 13 hosted MVNO customers worldwide, delivering prepaid and post-paid mobile services. Its off-the-shelf content catalog includes ringtones, wallpapers and games, as well dynamic content like real-time news feeds. "With this partnership, we're reducing MVNO complexities by offering a single point of contact," mPortal founder and CEO DP Venkatesh told FMC. "From a provider perspective, we have the entire mobile content solution you need."

For more details:
- check out the release

Related article:
- mPortal, Roundbox power TV Guide Mobile

Disney Mobile planning new services

Wed, 18 Apr 2007 20:01:37 -0400

Disney Mobile announced plans to expand its services in coming months, adding a location scout feature enabling handsets to display nearby points of interest as well as a photo-sharing application promising one-click uploads to a Disney photo-sharing site. Per its family-friendly mission statement, the MVNO will allow each family member their own photo page, and enable parents to control their children's ability to share images beyond immediate relatives. Disney Mobile senior VP/GM George Grobar told TWICE the MVNO is also prepping an online family calendar including automatic push alerts to phones, as well as a new content portal enabling side-loading to Disney handsets. - Jason

For more on Disney Mobile's plans:
- read this TWICE article

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Amp'd launches BREW apps on Canadian network

Tue, 10 Apr 2007 20:01:37 -0400

Developer giant Qualcomm and Amp'd Mobile announced the launch of BREW-based wireless data services for the MVNO's Canadian subscribers, heralding the first commercial BREW deployment in Canada. The deployment builds on Amp'd and Qualcomm's existing relationship--according to Amp'd, more than 50 percent of its U.S. subscriber base has downloaded or used a BREW game or entertainment service in the last 30 days.

"Qualcomms BREW solution has created the ideal environment for Amp'd to deliver the best in mobile entertainment applications and services to our customers," said Amp'd senior VP of emerging technologies Mike McSherry in a prepared statement. "3D games, music, streaming video and other rich multimedia services that push the boundaries of what is possible on today's high-speed wireless networks are at the heart of the Amp'd Live offering, and BREW has been a major factor in helping us capitalize on it."

For more on the Canadian BREW launch:
- read this release

Related articles:
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- Amp'd sets Canadian launch date

Amp'd closing in on 200K subscriber mark

Mon, 09 Apr 2007 20:01:39 -0400

Amp'd Mobile announced its subscriber totals are now approaching the 200,000 threshold following the first-quarter addition of 84,000 new customer activations. The MVNO also stated ARPU totals exceeding $100 per month, with data ARPU accounting for roughly $30 per month. Of that $30 monthly total, more than 50 percent derives from mobile entertainment, doubling the industry average; according to Amp'd, subscribers consumed more than four million videos, songs and mobile games in Q1 2007, doubling the MVNO's Q4 2006 figures.

Other Amp'd benchmarks: Subscribers are now downloading more over-the-air music downloads than ringtones, and original content--though comprising just five percent of all Amp'd Live content--generates 30 percent of overall downloads.

For more on the Amp'd subscriber data:
- read this release

Related articles:
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KDDI launching U.S. MVNO

Sun, 08 Apr 2007 20:01:39 -0400

KDDI Corp. announced it will launch an MVNO via the Sprint Nextel network, becoming the first Japanese operator to deliver services under its own brand in the U.S. market. KDDI, Japan's second-largest mobile operator, will launch the service later this month; its KDDI America Inc. subsidiary will manage the venture, which initially targets Japanese consumers now living in the U.S. KDDI execs told The Asahi Shimbun the MVNO will later expand its demographic reach to target other Asian populations as well.

Because of the standards schism between the U.S. and Japanese markets, the new KDDI service will employ handsets created for the Sprint Nextel network, although in June the operator will roll out handsets optimized for Japanese input and display. KDDI also said it plans to introduce ringtones and social networking services, also promising discounted calls to Japan.

For more on the KDDI U.S. launch:
- read this Asahi Shimbun article

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Sonopia offers DIY MVNO service

Sun, 01 Apr 2007 20:01:38 -0400

Juha Christensen, the former head of Microsoft's mobile division and a founder of Symbian, announced his latest venture: Sonopia, which enables organizations, charities or individuals to launch branded mobile services through its online service and split the resulting revenues. Promising each fledgling MVNO a selection of popular handsets, competitive calling plans, premium voice and data services and customized content, including social-networking functionality, Sonopia offers network coverage via Verizon Wireless and handles all billing, credit management, shipping, and customer support. The sponsoring group gets 5 percent of the revenue collected from its subscribers; Sonopia shares the remainder with Verizon and Vodafone Group.

"People want a phone that reflects their personality, a calling plan that suits their lifestyle, and quick and easy access to information and content from groups and friends they care about," said founder and CEO Christensen in a prepared statement. "We're giving them all that, plus we're making it easy to support a cause that means something to them. Through Sonopia and its partners, everyone can find a mobile services offering that fits just right--or you can create your own and stake a claim in changing how your friends and family think about their cell phones. We expect there to be more than 10,000 Sonopia-powered mobile carriers serving U.S. consumers within two years."

Sonopia also announced its first partnerships, which span from the National Parks Conservation Association to the American Medical Student Association to the Chicago Bandits of the National Pro Fastpitch Women's Softball League.

For more on Sonopia:
- read this release

Telecom Italia, COOP launch MVNO

Thu, 29 Mar 2007 20:01:38 -0400

Italian operator Telecom Italia announced an agreement with retailer COOP to launch COOPVoce, the nation's first MVNO service. Financial terms of the deal were not disclosed, although the contract excludes Telecom Italia from inking virtual mobile operator partnerships with other retail brands. COOP, Italy's largest retailer with over 1,300 outlets, a 17.1 percent market share and 6.5 million customers, will launch service trials in April, with an official launch scheduled for late summer.

In a news conference announcing the deal, COOP Italia CEO Vincenzo Tassinari said COOPVoce is targeting 1 million customers and annual sales of €200 million within three years' time. According to Telecom Italia CEO Riccardo Ruggiero, he sees little risk of losing his own mobile subscribers in the process: "There is scarce or non-existent cannibalization" of Telecom Italia customers, he said in the news conference, adding there is "a lot of value added" in partnering with COOP.

For more on COOPVoce:
- read this Forbes article

Related article:
- Mobile TV takes off in Italy

Fearnet scares up multiplatform series

Thu, 29 Mar 2007 20:01:36 -0400

"Spider-Man" helmer Sam Raimi signed to produce the first two original series for Fearnet, the multiplatform horror venture launched in late 2006 by Sony, Comcast and Lionsgate. Raimi's Ghost House Pictures will produce "Devil's Trade," a seven-episode, ad-supported serial running between three and five minutes each week; Fearnet will make the show available via mobile handsets, on-demand cable and streaming Internet video. Fearnet also announced an advertising deal with Boost Mobile, agreeing to integrate the MVNO's service into the "Devil's Trade" narrative. Ghost House will also create a as-yet-untitled Fearnet series that will serve as a prequel to its upcoming Columbia Pictures feature release "30 Days of Night."

For more on Fearnet:
- read this Variety article

Ex-Nokia president launching ad-funded MVNO

Wed, 21 Mar 2007 20:01:39 -0400

Former Nokia president Pekka Ala-Pietilä and Contra Group chairman and CEO Antti Öhrling are poised to launch Blyk, a "pan-European free mobile operator" offering subscribers free, ad-supported voice and text services. According to Mobile Today, Blyk will launch in the UK in two weeks, targeting the 16-to-24 demographic; Orange is rumored as the network partner. "We are going public now to invite all creative marketers and advertisers to join us in shaping this exciting new channel," Ala-Pietilä said, declining to discuss specifics.

According to Mobile Today, insider reaction to Blyk is decidedly mixed. "It's a really interesting idea," said one operator source. "They are a credible organization, Pekka is a credible guy, and he's got the money, which makes it very interesting." John Strand, CEO of Strand Consult, is not impressed, however. "I would rather invest in the national lottery than invest in that MVNO," he said. "Look at the size of the mobile market, and look at the value of the advertising market. If you want to pay all mobile bills through advertising, [you'd have to take] all the advertising in the whole country and move that to financing the mobile phone bills. It is not possible."

For more on Blyk:
- read this Mobile Today article

Amp'd Mobile generates $107M in Series E

Wed, 21 Mar 2007 20:01:37 -0400

Amp'd Mobile raised $107 million in its fifth round of venture capital financing, bringing the MVNO's total funding to over $360 million since its late 2005 launch. According to PEHub, the round was led by hedge fund Old Lane Management and return investors Columbia Capital, Highland Capital Partners, Redpoint Ventures, Intel Capital, MTV Networks, Tudor Investments and Universal Music Group. Privately-held Amp'd is reportedly mulling whether or not to accept additional financing.

For more on the Amp'd financing:
- read this PEHub article

Related articles:
- MTV, Amp'd Mobile in content development deal
- Amp'd Mobile planning ad-subsidized service
- Amp'd content outsourcing deal pending

Apple reaches iPhone trademark deal with Cisco

Wed, 21 Feb 2007 19:01:39 -0500

Apple and Cisco Systems announced a resolution to their dispute over rights to the iPhone trademark. Under the terms of the out-of-court settlement, the companies will share global ownership of the iPhone brand on their respective handsets, with both sides agreeing to dismiss all pending legal action over the trademark. In a joint statement, Apple and Cisco also said they would "explore opportunities for interoperability in the areas of security, consumer and enterprise applications." Other terms of the deal were undisclosed.

In its original filing against Apple, Cisco claimed its ownership of the iPhone trademark dates back to its 2000 acquisition of start-up Infogear Technology; the networking equipment giant formally launched its VoIP-enabled iPhone device in late 2006, some time ahead of Apple's much-touted multimedia handset announcement. Upon filing the trademark infringement suit in mid-January, Cisco CEO John Chambers said his company was more interested in interoperability than a financial settlement.

For more on the Apple/Cisco settlement:
- read this San Francisco Chronicle article

Time Warner launches Mobile Access

Tue, 13 Feb 2007 19:01:38 -0500

Time Warner Cable announced wireless phone service launches in the Raleigh, North Carolina and Austin, Texas markets under the Mobile Access brand. Offered via the Sprint network, the MVNO service establishes Time Warner as a true quadplay provider--to that end, the company will tie its cable and broadband services directly to the fledgling platform, promising mobile TV channels devoted to 24-hour local news, ABC News, music and movie trailers. Subscribers to Time Warner's Road Runner Internet service may also access e-mail from their handsets.

Mobile Access is the result of a joint venture formed last year by Sprint and Time Warner in conjunction with service providers Cox Communications and Bright House Networks. Pricing for the service ranges from $15 to $25 per month.

For more on the Mobile Access rollout:
- read this Charlotte Observer article