Filed under: Cellphones

We know, the little possibility that the whole deal could fall apart has been keeping you wide awake for months, but at long last, you can push aside your anxiety and hit the sack. Virgin Mobile USA announced today that it had “completed its acquisition of Helio,” and all of the terms put forth on June 27th were used in the final close. Aside from garnering all the necessary regulatory approvals, Helio shareholders SK Telecom and EarthLink have received 13 million shares of Virgin Mobile USA Class A common stock, with a value of around $38 million. It’s also noted that both SK Telecom and Virgin Group will each invest a cool $25 million in Virgin Mobile USA for preferred shares. And then, there was one.

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Filed under: Wireless

We knew it was coming, but Philadelphia’s citywide WiFi is now officially being turned off, and Earthlink is planning on pulling down all of its access points. Like basically every other municipal WiFi project, it seems like the cost of keeping the system going outweighed the benefits, and Earthlink couldn’t find a buyer willing to take things over. Current Earthlink customers will get 30 more days of service, until June 12, and then it’s lights bytes out. Here’s hoping Philly coffee shops are ready for an influx of urban warriors.

[Via Philebrity, thanks Andy R.]

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Filed under: Wireless

digg_url = ‘http://digg.com/tech_news/Earthlink_puts_municipal_WiFi_business_up_for_sale’; It looks like Earthlink was talking about plenty more than just Helio and revenue figures during its recent earnings call, with CNET News.com now reporting that the company also dropped word that it’s selling off its much-hyped and significantly-scaled-back municipal WiFi business. Of course, that news hardly comes as a bombshell given the company’s recent rumblings on the matter, to say nothing of its drawn out, ill-fated attempts to spread its WiFi signals throughout San Francisco. Earthlink apparently hasn’t found any takers just yet, however, and there’s no word about how much their asking for it, but we wouldn’t let that stop you from putting in an offer — just be ready to put up with plenty of competition.

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Filed under: Cellphones

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 of 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.

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Filed under: Cellphones

Sky Dayton, founder and chairman of the phantasmagorical Helio, has announced that he’s stepping down as CEO to become chairman of the board of the last-man-standing MVNO. Dayton will be replacing Jinwoo So, as chairman of the board, while himself being replaced by Wonhee Sull, formerly the company’s president and COO. “Helio has reached a point in its development where I feel the timing is right for this change… As we have for the past three years, the two of us will continue to define Helio’s direction and future,” said Dayton. It’s possible that with the recent influx of cash (and increased ownership) from from its Korean parents and the dwindling marketshare of MVNOs meant that SK felt it was time to step in and get things on track.

Update: Lots of fun title inaccuracies going on up in here. See above for the latest, correct edits.

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Filed under: Wireless

In a statement so laden with PR speak that it’d bring even the most heartless PR flack to the brink of wretching, Earthlink’s CEO has announced that the company is to withdraw investment in Municipal WiFi schemes unless the “model” of these networks becomes more closely aligned with Earthlink’s undefined “strategy.” Translation? Earthlink ain’t making a big enough return on its investments in MuniFi projects, and the shareholders are getting antsy. This could leave various cities high and dry without WiFi, although Earthlink apparently won’t be able to simply walk away from the contracts that they’ve already signed. This could be a major setback for blanket WiFi coverage in cities across the US, although we doubt it’ll be long before someone else picks up the baton (either that, or the cities will probably drop it.)

[Via Slashdot]

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Filed under: Cellphones

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]

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