We told you it might happen, and it did. Faced with money problems that never seem to disappear, today, Helio announced its allegiance to a new master, Virgin Mobile.

Though the news seems abrupt, we’ve been waiting for an update on Helio’s situation for some time now. Back in February, we reported on Helio’s difficult situation: it lost over $500 million in three years. Ouch.

May comes around, and we find out Virgin Mobile and Helio are interested in each other. A merger could save both companies — one from mediocrity and the other from extinction.

Virgin Mobile has the large customer base, money, and reach that Helio needs to survive, and Helio has the software, elite handsets, and premium plans to take Virgin Mobile to the next level. The virtual wireless carriers need each other, and it’s about time they did something about it.

This morning I received an email from Helio, my wireless service provider of choice, explaining the acquisition. Current members and their plans will continue without interruption, but the Virgin Mobile brand will eventually replace the Helio brand.

Q: Will the HELIO brand be retained, or will everything migrate to Virgin Mobile USA?
A: Over time, we expect that all aspects of the customer experience will be integrated under the Virgin Mobile USA brand. Integration of the direct sales channel will begin immediately, and we expect that existing HELIO products and services will soon be offered through the Virgin Mobile USA website at www.virginmobileusa.com.

That’s definitely a big change, but now my fear is Helio’s going to change too much. Only time will tell.

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Entry was posted on Friday, June 27th, 2008 at 5:41 pm under Cell phones.

Read more entries by Danny Mendez.
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