SK-EarthLink Rebrands As Helio by Sue Marek

SK-EarthLink isn't exactly a catchy name for a hip new wireless service aimed at the young adult market. That's why the $440 million joint venture between SK Telecom and EarthLink decided to change its name to Helio, after the Heliocentric view-a radical theory preached by Copernicus in the 16th century that said that the sun was the center of the solar system. In the same way, Helio executives believe that the mobile device is the center of their target market's lives.

Stuart Redsun, executive vice president of marketing at Helio, says company CEO Sky Dayton and Redsun spent a Sunday afternoon locked in an office debating various names and finally decided on Helio. The company then tested the name with consumers and found that it resonated well. "It conjured up all the right connotations," Redsun says. "Even if they don't know the industry, Helio felt high-tech and innovative, powerful and friendly."

Unlike other emerging MVNOs such as Mobile ESPN or Disney, which have highly visible brand names, Helio will be a completely new brand without any consumer awareness. Helio executives believe this is an advantage because it means that they won't have to battle any pre-conceived notions about the service and the consumer group that it will appeal too.

One way the company plans to differentiate itself is through its distribution channels, including its own branded stores. While other MVNOs have talked about distributing their products in places that appeal to their target group, Helio is one of the first to propose its own stores. According to Ali Zanjani, executive vice president of sales and distribution at Helio, the company will build and operate its own stores and those stores will represent the brand and the sales experience. However, Zanjani wouldn't say exactly how many stores the company will open. "We are going to have the right number of stores. It will allow us to get enough branding and set examples."

Besides the company-owned stores, Helio will be working with various distribution channels, including those that "lend themselves to the lifestyle brand that we represent," Zanjani says. This includes traditional and non-traditional channels, select big-box retailers, agents and the Web. In addition, the company is hosting events for potential agents starting Nov. 1 in six cities nationwide: Los Angeles; Newark, N.J.; Chicago; Dallas; Miami and San Francisco.