SK Telecom Expects Helio Profit in 2009

7:00 am on April 11, 2007 | Category: Business, Cell Phones, Multimedia, Telecom Services, Wireless

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South Korea Telecom Co. isn’t expecting positive cash flow from its stake in U.S. MVNO, Helio, until 2009, said the company’s Chief Executive in a recent interview with reporters.

“Losses at our overseas operations are in some sense the price we pay for an early entry into other markets… free cash flow at Helio is expected to turn positive by 2009,” explained CEO, Kim Shin-Bae.

In the mean time, SK Telecom is hoping that the Helio business will secure a subscriber base of between 200,000 and 250,000 users by the end of 2007, for annual revenues of $140 to $170 million.

Helio is a 50/50 joint venture owned by SK Telecom and U.S. internet service provider, EarthLink. It leases cellular network capacity from Sprint Nextel, and has launched a number of niche wireless voice and data devices since opening for business in May 2006.

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    Edited by Jeremy Maddock