Youth-Oriented Helio Phone Service Launches

Helio has finally launched its phone service aimed at 20-somethings, combining mobile technology from SK Telecom with service from Sprint Nextel.

Helio, a joint venture between Earthlink and South Korea’s SK Telecom, has formally launched its new mobile service aimed at today’s technologically-savvy youth (and young at heart). Headed up by Earthlink founder Sky Dayton, Helio aims to bring advances from the South Korean mobile market to U.S. users who can most appreciate it: kids and 20-somethings who’ve grown up in a world of mobile technology.

At first glance, Helio appears to be an expensive proposition: subscriptions start at $85 a month for 1,000 minutes of talk time (escalating o $135 a month for 2,500 minutes), but the service includes data services like picture messages and Internet data services like email and Web surfing. Helio sees voice services as just one thing its customers do with their phone: other phone-centric activities include mobile video, heavy use of data services, and Helio’s exclusive tie-in with online social froth MySpace. A la carte services start at $40 a month for 500 minutes and pay-as-you-go data services.

Helio is renting service from Sprint Nextel, one of several MVNO’s (Mobile Virtual Network Operators) operating on Sprint’s network including Disney. To start, Helio is launching with two handsets, the $275 Hero and the $250 Kickflip: both sport 2 megapixel cameras and video capture, MySpace photoblogging (being a Helio user gets you extra storage), integrated Web browsing and Yahoo search, music capabilities, 70 MB of memory plus expandable storage via MicroSD cards, and full-color 3D graphic capabilities.

Analysts are of two minds about Helio. On one hand, niche mobile providers targetting well-defined markets (like teens and 20-somethings) with products tailored to their lifestyles seem to have a shot: Disney and others are having good luck with kid-and-tween oriented mobile phones with parental monitoring, and MVNOs are starting to come online with products and features targeting the senior market. However, some expect Helio will have to lower prices or engage in heavy cross-promotion to tempt users away from their existing mobile phone services, and while consumers may want advanced mobile phone features like picture sharing, they don’t really seem to use them. For its part, Helio says it expects to have 3 million subscribers within three years.