Internet service provider EarthLink Inc. and Korean carrier SK Telecom have finalized the formation of their new mobile virtual network operator, the companies announced late Thursday.
The joint venture, called SK-EarthLink, will offer wireless voice and data services to U.S. consumers later this year. The operator will be fueled by $440 million in investments from the two companies during the next three years, and plans to target early adopters by offering feature-rich phones and high-tech applications using both CDMA2000 1xEV-DO-based networks and high-speed wireless local area networks.
Each company will own 50 percent of the venture and will elect three members to SK-EarthLink’s board of directors. The operator is aiming to sign 3 million customers by 2009, generating $2 billion in revenues.
SK-EarthLink has yet to disclose which networks it will use for the service, although contracts are already said to be in place. Because the venture will use EV-DO technology, it could use both Verizon Wireless and Sprint PCS’ EV-DO networks, though industry sources have said it’s more likely Sprint’s network will be used exclusively.
The venture has established offices in Los Angeles and Atlanta and hopes to set itself apart from other operators by offering unique data services.
