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Helio to offer Yahoo services on deck

SUNNYVALE, Calif.—Yahoo Inc. scored another wireless win, inking a deal to deliver search and information services for subscribers of soon-to-launch mobile virtual network operator Helio L.L.C.

The MVNO, a joint venture by SK Telecom and Earthlink Inc. slated to launch this spring, said it effectively will put Yahoo on its deck, allowing users one-click access to e-mail, instant messaging and other offerings from the Internet giant. The companies said they plan to co-market the services, and work together to introduce new offerings.

Terms of the deal were not disclosed.

“We’re continually seeking new ways to keep our users connected to their community of friends and personalized content,” said Marco Boerries, senior vice president of Yahoo’s Connected Life.

Yahoo has a similar agreement with Cingular Wireless L.L.C., and some smart phones from Nokia Corp. feature pre-loaded Yahoo services.

The deal marks the latest step into wireless by an Internet behemoth. Google Inc. has notched agreements to provide a personalized home page for European T-Mobile subscribers, and Motorola Inc. has agreed to include a Google-branded “hard key” for wireless Web access. Other Web-based companies stepping into mobile include Ask.com and Microsoft Corp.’s MSN.

But some see the trend as a race to the bottom line for carriers, which face the threat of becoming “dumb pipes” for wireless data. For operators to remain competitive in a converged world, they must use their networks to gather information, create unique consumer relationships and offer compelling wireless services, according to Martin Dunsby, senior vice president and general manager of global services for Openwave Systems Inc.

“What (operators) really need to do is take a step back and look at user preferences,” Dunsby said. “The vision can’t just be, ‘We enabled Google.’”

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