EarthLink stops investing in Helio

EarthLink stops investing in Helio

EarthLink is struggling in their core businesses and the company has now revealed that they are stepping back in funding their mobile joint venture with SK Telecom Co. named Helio.

This could potentially mean that SK Telecom could now become the major stakeholder in Helio.

This project was launched last year and has been a loss making venture though it is gaining subscribers.

EarthLink believes that the project would lose between US$340 million and $360 million this year. SK Telecom continues to invest more in this venture.

Helio had 130,000 subscribers at the end of August and they are now aiming to have between 200,000 and 250,000 customers and revenue of $140 million to $170 million by the end of this year.