Helio gets up to $270 million

It's coming from South Korea's SK Telecom, which along with EarthLink owns the L.A.-based wireless venture that's been hemorrhaging dollars - and which has been a drag on EarthLink earnings. (Reuters) Eric Savitz over at Tech Trader says the real story is that EarthLink isn't going to put any more money in Helio. All told, the company is expected to lose $340 million and $360 million this year. And for what? Here's a Cnet story from two years ago, just as Helio was getting started:

The Los Angeles-based company, formed earlier this year with seed capital of $220 million from each partner, is creating a new high-end phone service targeted at a young, big-spending demographic. Headed by EarthLink founder Sky Dayton, the company says it's trying to bring the culture of phone use in South Korea--where networks are more advanced and subscribers spend far more time and money on multimedia and entertainment features--to the United States. "We're really behind the times when it comes to wireless in the United States," Dayton said. "I think a lot of people are tired of waiting."

The good news is that Helio customers spend an average $90-$100 per month on wireless service, twice the industry average. Helio ended August with 130,000 subscribers. (Silicon Alley Insider)