July 17th, 2006

Helio Offers Lower Entry Price Points

I just saw a press release that Helio is offering service at some lower price points than were available at launch. Lowest price point for service at launch was $85 if I remember, and now it is $60. They are also now offering an opportunity to add lines. They haven’t been public with how registrations are going, but both moves make sense either way. $85 is a high buy-in price even if it does compare favorably to packages with similar features at national carriers. Also, our data show that a majority of teens are on their parents plan – even quite a few young adults (at least 18 years of age). Marketing to a youthful audience also means selling their parents on value. I think it’s interesting that the changes/additions come so close to their launch as a lot of people criticized and challenged these exact points prior to their launch. Price of handset and especially service are very important purchase criteria for mobile subscribers. Hopefully this helps them to add subscribers – they are doing a lot of interesting things and pushing the envelope on data services.

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