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Helio and Virgin to merge

It looks like the axe is about to fall on US MVNO Helio. According to the Financial Times‘s sources, Virgin Mobile USA is to merge with the SK Telecom-owned operator, with a deal to be announced as early as this week.

The FT says Virgin Mobile and Helio will combine, Virgin Mobile will issue new shares and SK Telecom will end up holding 20 percent of the new company. We’ve been expecting some sort of union between the two comanies for a while, after both have struggled in the last few years and a combination could give them the heft they need to make a more substantial impact in the US market. Still, bit of a shame to see Helio go – it always seemed like it had more potential.

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