Virgin Mobile USA To Kill Their Postpaid Service (Helio) On May 25th
Update: This is now confirmed. See Virgin Mobile’s statement below.
According to a series of tips I’ve just received from multiple trusted sources, Virgin Mobile USA is planning to shut down the post-paid chunk of their wireless services on May 25th, 2010.
You see, there once was a little wireless carrier called Helio. Bringing over all kinds of crazy sliding what-nots from South Korea, they tried their damnedest to offer the coolest cell phones on the block. They also bled money like a busted spigot, burning $710 million before they were ready to call it quits. In June of 2008, Virgin Mobile (who then offered solely pre-paid wireless plans) came along and snatched up Helio for $39 million in stock, primarily to serve as a foundation for their then non-existent postpaid service.
A great plan, until Sprint acquired Virgin Mobile just a year later, primarily for their pre-paid service. Sprint obviously already has a big ol’ post-paid service, making Virgin Mobile’s (relatively small) post-paid service mostly useless.
As a result, Virgin Mobile will be ending their postpaid offerings come May 25th, less than two years after they purchased it in the form of Helio.
It’s currently unclear what will happen to active Virgin Mobile postpaid accounts, though they will presumably be transitioned over to Sprint’s postpaid services. We reached out for a comment from the two companies early this morning, and have not yet received a response.
Update: We’ve just confirmed this with Virgin Mobile. Current Virgin Mobile (ex-Helio) customers will not automatically be transitioned to Sprint. Here’s what they said:
No customer will be automatically migrated to Sprint’s postpaid service. However, Sprint has created a special offer for our customers.
Current postpaid customers are being given $50 towards the purchase of a Sprint postpaid handset with a new two-year agreement. This credit is in addition to any applicable rebates that may apply. Postpaid customers moving from Virgin Mobile to Sprint will also receive $150 off of handsets as part of Sprint’s standing new customer offer. Activation fees will also be waived.
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Filed Under: Mobile Tech
Considering that we received confirmation on this directly from a Virgin Mobile rep that we know quite well, it’s most definitely not a hoax.
It’s very possible that CS doesn’t know about this yet – we did find out about it before they officially announced it, after all.
I put that paragraph on Wiki. Again, it’s a hoax. The number is for the PR person for Virgin. They are NOT eliminating Helio; it’s some employee with a grudge or someone else, punking all of us. We got punked. Repeat, they are not eliminating Helio on May 25th, and you do not have to switch. Call 611 from your Helio phone and ask customer care.
A call to Helio customer care (611), reveals that the text message was a hoax. There is no plan to eliminate Helio phones. The company says “If we were to make a change in your service, we would inform you in writing, not with a text message. There is no May 25th deadline, we are not eliminating Helio nor forcing Helio customers to switch phones at this time.”
This one is interesting form Wiki
http://en.wikipedia.org/wiki/Helio_%28wireless_carrier%29
On March 3, 2010, all Helio users received the following text message: “This VMU pospaid service (formerlio Helio) will end on May 25, 2010. Call 908-607-4014 BEFORE May 25 to keep your phone number & get new service options.” Helio sets will no longer be usable after this transition. Sprint will offer $50 credit towards the purchase of new sets.
Oh, I have no reason to doubt the source. The comment was more just ire at the Tier I support for being clueless (and insisting that my source was incorrect).
After calling back and insisting to talk to Tier II, a very nice gentleman informed me that his department had not received “official” word (said in such a way that one could easily visualize the air quotes), but that a shutdown was on the way.
He also told me that his department had been informed that sanding policy from about a week ago was to waive the ETFs for people wishing to cancel, to ANY other company (not just Sprint).
Oh and I almost forgot I am sure Greg’s source is way better then a front end CSR. I bet we see letters shortly from VM confirming the termination.
Front level CSR’s are not always in the loop. Remember regular Sprint CSR’s had no idea about the switch over deal or that the number was legit.
The wording of the article I have linked in a previous post leads me to believe this decision came form the Sprint side. Which they can do.
Again:
http://kansascity.bizjournals.com/kansascity/stories/2010/03/01/daily23.html
Different part of the article this time:
“Sprint Nextel Corp. is disconnecting Virgin Mobile’s postpaid phone service as it targets the brand squarely at subscribers who buy their wireless service on a month-to-month basis.”
This falls inline with previous announcements. They wanted Virgin for the pre paid expansion
In other words Sprint the parent wants the child VM focused on pre paid only.
Interesting. I just called Helio customer service and they told me that they are NOT shutting down service on May 25th.
Right, the EFT is waived if you go to sprint, but what about to another company?
I just call them on my heilo 611 & they said that ETF will be waved so tomorrow I will be calling sprint 800 877-4646 for my 2 lines $400 off of handsets as part of Sprint’s standing new customer offer.
So, does anyone know if this is justification to cancel without getting hit with the $200 ETF per line?
My wife and I got Helio less than 2 years ago (when they were still Helio) and we’ve been really happy with the service… we changed to them FROM Sprint. So, needless to say, the idea of returning to Sprint is not one that fills us with joy.
Does anyone know if this is sufficient grounds to get out of our contracts (which are up AFTER the May 25th date) so that we can port our numbers to a different company?
Looks like they have already changed their website to reflect that thay are prepay only now.
Cool timing. I have been a Virgin user forever. Last month I was going to change from my Virgin prepaid to their postpaid but was too lazy to get around to it. So I will stay with my prepaid and be happy. I am not a bells and whistles person when it comes to my phone.
Procastanators of the world win again!!
[...] Ocean owner, it’s a sad day for me because Virgin Mobile USA (NYSE: VM) said it would be cutting off its postpaid [...]
http://kansascity.bizjournals.com/kansascity/stories/2010/03/01/daily23.html
Virgin postpaid customers will have until May 25, when the service ends, to decide whether to switch to Sprint-branded postpaid service or take their phone numbers to another postpaid or prepaid carrier.
Source is usually correct about what it reports. Things can change between now and then of course. But yes our phones will become paperweights, that is unless you flash it to like cricket or something. As to my question guess I will call tomorrow I can not see how they can hold us two out contract with the service ending in about two months, right around the time my contract is up. But I want my number so I should not have to wait till the last minute to go elsewhere.
[...] Ocean owner, it’s a sad day for me because Virgin Mobile USA (NYSE: VM) said it would be cutting off its postpaid [...]
Does this mean contracts are now void?
[...] information on the shutdown, courtesy of Crunchgear, below: No customer will be automatically migrated to Sprint’s postpaid service. However, [...]
[...] information on the shutdown, courtesy of Crunchgear, below: No customer will be automatically migrated to Sprint’s postpaid service. However, [...]
I miss Heliocity lol…!!!
[...] Virgin Mobile USA will shut down the post-paid chunk of their wireless services by May 25th, 2010. [...]
[...] Virgin Mobile USA To Kill Their Postpaid Service (Helio) On May 25th [...]
It is funny that you contradicted yourself in the same paragraph by saying “Furthermore, Virgin mobile, and Helio were ALWAYS MVNO telecom companies leasing space on Sprint’s network. When you use Virgin Mobile, your using Sprint.”
and then
“your coverage area will be LARGER as a Sprint POSTPAID”
Let me clarify, coverage area will not be larger or smaller since MVNO use Sprint’s network.
Everyone can make mistakes dude including you.
Also who wants to buy another phone when you are already satisfied with current phone and service.
so i take it the handsets (ocean,ocean2, mysto) will now be nothing more than fancy paperwieghts?….this sucks….i bought a mysto last month on ebay before i found out that they were in the process of changing there post paid plans…..uuugghhh!
[...] now, according to Virgin, Helio has an execution date: May 25th. Official statement, as passed to Crunchgear: No customer will be automatically migrated to Sprint’s postpaid service. However, Sprint [...]