By Jay Wrolstad
February 17, 2006 9:55AM

The partnership with MySpace represents a feather in the cap for Helio as the company prepares to enter a highly competitive market, said Yankee Group analyst Linda Barrabee. "This is the year of the virtual-network operator, with ESPN, Disney, and now Helio launching mobile services targeted at specific audiences," she said.

Wireless newcomer Helio has hooked up with the popular social-networking portal MySpace to introduce a pair of multimedia handsets as it prepares to launch a new mobile brand that targets young, tech-savvy consumers.
Helio, which will launch in the U.S. this spring, is a joint venture between Korean wireless carrier SK Telecom and Internet service provider EarthLink. The CEO of the venture is Sky Dayton, founder of EarthLink and Boingo Wireless.

Helio's wireless offerings, designed to make the virtual-network operator a hub of a connected group of users, is anchored by MySpace, a community of some 55 million members who chat and share music, photos, blogs, and other content online.

Real-Time Connection

MySpace Mobile on Helio takes that community experience one step further, enabling the members of that community to connect with each other at any time from any location.

Users will have a MySpace mailbox along with access to blogs, photos, and member profiles. Helio customers will be able to submit photos to MySpace.com from a Helio phone. Additional photo storage will be available on the devices themselves, and a presence indicator on the phones will show when friends are online.

The two Helio handhelds, called the the Hero and the Kickflip, are based on high-end mobile phones from Korea. Both feature virtual mobile-entertainment centers, stereo speakers, and built-in digital cameras. The handsets will be able to operate over high-speed, third-generation networks.

Year of Virtual Networks

The partnership with MySpace represents a feather in the cap for Helio as the company prepares to enter a highly competitive market, said Yankee Group analyst Linda Barrabee. "This is the year of the virtual-network operator, with ESPN, Disney, and now Helio launching mobile services targeted at specific audiences," she said.

Helio is tapping a large, established community and providing a way for that community to exchange information and content in real time by phone, said Barrabee, while MySpace is extending its presence beyond the PC. "It's a good way to take advantage of 3G networks that are designed for handling both voice and data services."

Yankee's Michael Goodman offered a similar take, noting that Helio can establish a new brand for the established MySpace audience. "It's all about sharing and connectivity, and taking that beyond the desktop," he said.

Barrabee suggested that MySpace will pursue additional partnerships with mobile operators to extend its reach further into that realm.