Virgin Mobile To Buy Helio?

Reports have Virgin Mobile USA set to buy mobile network Helio, putting it into the monthly contract market.

The Financial Times has reported that Virgin Mobile USA is set to buy mobile network Helio, which has reportedly been struggling.

Helio was launched just two years ago by SK Telecom and Earthlink, but reportedly only has around 200,000 subscribers. The newspaper report says that SK Telecom will receive about $50 million in Virgin Mobile shares under the deal and will invest a “nominal sum” in Virgin Mobile.

Virigin Mobile USA was launched six years ago, and aims at the younger, pay as you go market. The deal would put them into the more lucrative monthly contract pool, and also beef up their muscle in negotiations with Sprint Nextel, from whom it leases network capacity.