SK Telecom’s U.S. virtual network service takes No. 1 spot

Posted on : 2007-02-08 15:35 KST Modified on : 2019-10-19 20:29 KST
Helio service particularly strong in wireless Internet service sales

SK Telecom said that it has gained a firm foothold in order to join the U.S. mobile phone market during its first nine months on the market.

According to Korea’s largest wireless carrier on February 7, as of the end of last year, Helio, its wireless telecommunications service in alliance with EarthLink in the United States, has attracted more than 70,000 subscribers. Helio began the wireless telecommunication service in the U.S. in May last year.

Lee Jae-hwan, an official of Helio, said, "Considering the fact that Helio officially began marketing activity in July last year, it has seen a higher performance than we anticipated." Helio’s performance as of February 7 was the best among Mobile Virtual Network Operators (MVNO) in the U.S., which include Disney Mobile and Mobile ESPN.

An MVNO uses its brand name to resell wireless services "lent" by a licensed frequency spectrum owner, using that mobile phone operator’s network. Helio operates on Sprint’s network.

Helio fared far better than other wireless companies in the U.S. in terms of the average monthly sales per subscriber and wireless Internet, in particular. According to the company, the average monthly sales per subscriber reached US$100, almost two times higher than that of rival companies in the U.S. Helio customers subscribing to its wireless Internet service comprised 25 percent of its aggregate sales.

Sky Daton, CEO of Helio, said that SK Telecom’s strategy targeting the U.S.’s younger generation with the wireless Internet service was effective, adding, "We consider these sales figures more important than the number of subscribers."

Regarding Helio’s performance, Kim Sin-bae, chief executive at SK Telecom, said that it had not yet reached the satisfying point; "however, we judge that Helio has succeeded in gaining a foothold in the U.S. mobile phone market," he said.

"We expect that we will be able to attract over 100,000 subscribers within the second quarter of this year," said Daton.

Most viewed articles