MVNOs have become popular in the past year,
as big brands develop new mobile services to target narrow
market segments that the larger mobile phone carriers aren't
reaching. For example, Disney Mobile is going after
families; ESPN is targeting the young sports-watching male;
while Virgin Mobile has focused on the teenage audience that
shops in its music stores.
To differentiate its mobile service from what's already
available from the big carriers, Helio has focused on
providing easy access to mobile Internet content such as
game, music and video. Earlier this year, it announced deals
with MySpace.com and Yahoo.
"Helio isn't for everyone," Dayton said. "It's a service
that has been custom-built for the lifestyle of young people
who have their mobile device at the center of their
universe."
The company has also developed several of its own features,
including something it calls Helio on Top, or HOT, which
allows subscribers to program live content feeds to be sent
directly to their Helio device's idle screen. Subscribers
can select from 10 different live channels, including CNN,
Fox Sports, MTV News, MySpace, Surfline and Yahoo.
Helio has also developed new features called "gifting" and
"begging" that make it easier for customers to share
purchased mobile content among friends. Gifting lets people
purchase a music video, game or piece of content directly
from their handset and have it delivered, over the air, to
another Helio subscriber's device. Begging does the opposite
by allowing users to "beg" another Helio subscriber to
purchase content for them.
Last month, the company unveiled the two phones that will be
used for the service: the Hero, which costs $275 and the
Kickflip, which sells for $250. Each device features
2.2-inch, color LCD displays, removable memory, and a
2-megapixel camera with digital zoom and flash for capturing
pictures and video. The Hero also comes with stereo
speakers. Because Helio's subscribers are likely to view
their phones as accessories, they can also sync their
address books over the air to another Helio phone.
"Just as people have different shoes or handbags that they
wear at different times, they'll also use different phones,"
Dayton said. "We're getting to the point where cell phones
are more than communication tools; they're accessories,
too."
Dayton also claims Helio's pricing is unique, because it's
not "nickel and diming" consumers, forcing them to pay
separately for mobile Internet or text messaging services.
Helio's All-In Membership includes unlimited night time and
weekend voice calling, voice and video messaging, mobile
Internet surfing, such as MySpace browsing and Yahoo
searches, or access to the 3G network to download content
for a fixed rate. The service has three tiers of pricing
based on minutes used: 1,000 anytime minutes costs $85 per
month; 1,500 anytime minutes costs $100 per month; and 2,500
anytime minutes costs $135 per month. Helio games are priced
at a flat rate of $5.99 to buy, or subscribers can opt to
trial games by renting a game for a week for 99 cents.
Starting Tuesday, Helio phones and service will be available
online, or by calling 888-88-HELIO. By the end of May phones
will be in nearly 1,000 retail locations, and in 3,000 by
the end of the year. Helio's distribution partners include
leading national and regional retail chains such as Fry's
Electronics and Tower Records. Helio will also be available
at more than 100 college and university campus bookstores
across the nation.
|