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Wireless industry deathwatch

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Helio
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This past year saw a number of players in the wireless industry falter and sway under the burden of financial expectations. Here's a quick look at a few of them:

  • Emboldened by the success of the Centro and re-energized by the arrival of new executive chairman Jon Rubinstein, Palm will continue to move away from the tired Treo profile and toward the modern smartphone. Sure, Palm probably won't make a huge splash this year (they'll need a next-gen mobile OS in order to do that) but the former PDA powerhouse will almost certainly live to see 2009.
  • While many a MVNO has already gone the way of the buffalo, Helio will likely live long enough to die another day, thanks to a recent infusion of cash from parent SK Telecom. The company also recently slashed spending thanks to a round of layoffs, further increasing buoyancy. And given that the company wasn't scheduled to turn a profit until 2009, I'd say that it's pretty safe for the time being. My guess is that SK Telecom is looking at Helio as a long-term investment--a beachhead into the U.S. wireless market--and is probably prepared to lose a little cash to gain a foothold.
  • While 2007 saw both Sprint and Clearwire struggling under the weight of expensive WiMAX network buildouts, 2008 will serve as the defining moment for both WiMAX and the carriers that will provide it. Though they called off their earlier partnership, it seems likely that the two companies will resume their earlier discussions now that there's a new CEO in the driver's seat at Sprint. And if they don't ink a partnership agreement? Sprint will likely have enough cash in its coffers to see it through the year. Clearwire, on the other hand, could soon find itself in way over its head.

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