We'll be honest with you -- it's a bit disheartening to watch the (seemingly) inevitable happen to Helio. After all, it's managed to soldier on despite hordes of other MVNOs hanging it up here in the US of A. Nevertheless, data gleaned from EarthLink's most recent annual report shed some light on its deteriorating situation. Reportedly, Helio's net loss "widened by 41.3-percent to $326.6 million in 2007 compared to $191.8 million in 2006," yet revenues managed to grow 267-percent to $171 million from $46.6 million the year prior and subscriber growth rose 28-percent over last quarter to 180,000. Add those figures to the $42 or so million it lost in 2005, and we're up to a grand total just south of 560 million American dollars. Tough times, indeed.

[Via Silicon Alley Insider]

Back before there was Helio, there was Earthlink, South Korea's SKT, and a dream. Heliocity managed to score some shots of just what that dream looked like in the early days, a similar -- yet decidedly different -- vision than what the MVNO ended up bringing to market. Not only are the prerelease versions of Helio's first two models to market (the Kickflip and Hero) "SK Earthlink" branded, but check out that super trippy Kickflip proto, complete with aerial antenna and secondary LCD for self-portraits. The Ocean obviously came along further down the road, and while we like the all-black finish Helio decided on, we think the two-tone action here would've made for an interesting second choice. Read on for all the visuals.

It's hardly been a secret that Helio was causing some problems for Earthlink, but the company's CEO has just now weighed in himself on the matter, offering some comments on the situation and Helio's now former CEO Sky Dayton in one of those always exciting earnings calls. As mocoNews reports, Earthlink's Rolla Huff says the company "made hard decisions around getting our cost structure down," including the "very difficult decision...to not continue making incremental investments in Helio." Huff apparently laid none on the blame on Helio's Sky Dayton, however, saying simply that "Sky has a history of creating and building strong brands and he's done a great job at that with Helio," and that they "very much appreciate his willingness to be involved in getting Helio to this point in its life cycle." Of course, that was hardly the entire purpose of the call, and those concerned with the nitty gritty of earnings details can get their fix by hitting up the read link below.

We knew Earthlink and SK Telecom were both planning on reinvesting up to $100M each into struggling joint venture Helio back in July, and it looks like all that recent talk about "revised governance" was on point -- the deal will effectively shift management control of Helio away from Earthlink and to SKT for the first time in Helio's history. SKT has already allocated $70M to make the move, and it's also committed an additional $100M to future handset development and marketing. No word on what other changes SKT plans to make, but we'd happy to see Helio score a much-deserved second chance.

[Via MobileTech News]

As if receiving $200 million from SK Telecom and EarthLink back in July wasn't enough, Helio is now set to accept (up to) a $270 million check from SK Telecom. According to EarthLink, SK Telecom will "invest up to $270 million in Helio," and as expected, EarthLink was "very pleased" with the decision -- you know, considering that it won't be forced to cough up any more dough at the moment while still maintaining "substantial ownership interest in Helio's future." Most interesting, however, is the tidbit that mentions the parents' plans, as EarthLink and SK Telecom are reportedly "in discussions to amend their existing agreements to reflect the additional investment by SK Telecom and their future governance of Helio." Gotta pay to play, we suppose.

It's hard not to love the promise of the White Space Coalition, which includes players like Google, Microsoft, Dell, Earthlink, HP, Intel and Philips. Those crazy kids want to bring us wireless internet over the "white space" bandwidth in between TV broadcast channels, and we say let 'em. One little problem though, FCC says the concept doesn't work. The prototype that the Coalition submitted for review was designed to sense existing TV signals and transmit around them, but the FCC found it inconsistent in this aim, and won't be giving its stamp approval to a device that interferes with existing broadcasts. The FCC does say that it's open to looking at the next generation of the technology, since better performance is certainly possible, and the White Space Coalition wasn't too downhearted: the group is "encouraged that FCC engineers did not find fault with our operating parameters and remain confident that unlicensed television spectrum can be used without interference." Between this fledgling technology and that upcoming 700MHz auction, things are really looking up for WiFi-jilted mobile internet users across the States.

As Amp'd scrambles for life and limb and Palm sees its once tight grip on the market slipping away, Helio is being rewarded with a pair of checks worth $100 million apiece. Reportedly, SK Telecom and EarthLink are set to inject a substantial amount of cash into the MVNO, as it has supposedly burned through the initial $440 million initially put forth. Recent financial results from Helio have been less than encouraging, but obviously someone up the ladder thinks it's wise to forge ahead through treacherous waters. Of course, just about anything can survive with enough funding to back it, but unless things get turned around real quick like, Helio isn't likely breathe new life into the oft neglected MVNO universe.

Alright, we've got good news and bad news. Which do you want first? The bad, you say? Well, it seems Helio's losses in the first quarter amounted to a $29.3 million equity loss for parent Earthlink in the same timespan, which ultimately accounts for over 97 percent of Earthlink's Q1 losses -- though in the earnings report, the company still seems pretty optimistic and committed to its MVNO lovechild with Korea's SK Telecom. Speaking of SK Telecom, the good news: Helio's other corporate parent said this week that it would be injecting additional capital to help out with marketing efforts (though would maintain the same equity balance in Helio with Earthlink that it does now). Like Earthlink, SK Telecom sounds optimistic about Helio's future, saying that despite falling short of initial expectations, ARPU (average revenue per user) and subscriber count are both looking up for 2008 and 2009. Something tells us the upcoming Ocean is going to help with those efforts significantly.

Read - Earnings release [Via mocoNews]
Read - SK Telecom's plans

It looks like Amp'd and ESPN Mobile aren't the only MVNOs discovering that their business models may not be getting them where they want to be. An unconfirmed report out of Telecoms Korea is brewing that Helio -- chic Kickflip and all -- has managed to sign up 100 (yes, that's one hundred) subscribers since launching a couple months back. SK Telecom, which teamed up with Earthlink to form Helio, is denying the reports and insisting the true number is in the thousands, but either way they've fallen well short of projections. It looks like we now have an explanation for Helio's shockingly generous gadget trade-in program. SKT also looks to shore up Helio's lineup with as many as five new models by year end, but we have to wonder -- if 100 subs is an accurate count, is there any hope for a turnaround?

UPDATE: We just got an official response from Helio about this: "This morning's report by Telecoms Korea is wholly inaccurate and does not represent Helio's membership figures." They wouldn't tell us any more than that, but they're adamant that the figures reported aren't correct.

BusinessWeek writer Olga Kharif paints an interesting portrait of the potential state of the wireless industry following the government's unprecedented sale of spectrum this summer, called Auction 66, which could see a number of new players enter the voice and data market in the not-too-distant future. Following several years of industry consolidation, highlighted by Cingular picking up AT&T and Sprint grabbing Nextel, we could soon see companies that have traditionally delivered content in other fashions -- Time Warner, MySpace-owner News Corp., or Clearwire -- offer services that compete directly with the four major carriers. Several players, including Intel-backed Clearwire, Google-backed Earthlink, and a venture between Time Warner Cable, Sprint-Nextel, Comcast, Cox, and Advance/Newhouse Communications have already expressed interest in bidding for a slice of spectrum, while other bidders, which could include a Bill Gates- and Paul Allen-backed contender, will be revealed sometime next month. Unless the established carriers snatch up all the available spectrum, which is highly unlikely, fresh blood in the industry should bode well for consumers, who will likely benefit from lower prices, more services to choose from, and less restrictions on their bandwidth usage.