SK Telecom to sell off ailing US unit to Virgin Mobile USA

Sun. June 29, 2008; Posted: 10:38 PM

SEOUL, Jun 30, 2008 (Asia In Focus via COMTEX) -- VM | Quote | Chart | News | PowerRating -- The SK TELECOM CO. (KSE: 017670), South Korea's leading mobile carrier, has agreed to sell off its ailing U.S. unit to VIRGIN MOBILE USA INC., according to foreign media reports on Saturday. SK Telecom launched HELIO, its U.S. communications service, in 2006 as a joint venture with U.S. Internet service provider EARTHLINK.

* It has been in the red since its launch, prompting some observers to speculate that EarthLink might not make additional investments in the venture.

* Virgin Mobile agreed on Friday to buy Helio from SK Telecom and EarthLink for about US$39 million and Virgin Mobile, also a joint venture between the VIRGIN GROUP and SPRINT NEXTEL CORP., will gain about 170,000 customers from the purchase.

For full details on Earthlink Incorporated (ELNK) click here. Earthlink Incorporated (ELNK) has Short Term PowerRatings of 4. Details on Earthlink Incorporated (ELNK) Short Term PowerRatings is available at This Link.

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