What the Virgin Mobile-Helio deal means to you

Bittersweet news for Helio subscribers today: Yes, your high-end handsets and 3G service will keep on keepin' on, but Helio stores and even the brand itself will probably go bye-bye.

Virgin Mobile confirmed Friday that it would buy Helio, an MVNO (or "mobile virtual network operator") that's been burning through cash at a ferocious rate, for about $39 million in stock. If all goes according to plan, the deal will close this fall.

So, what does this all mean to Helio subscribers? Basically, it's a new lease on life for your phone.

Helio, which had been teetering on the brink after losing more than $300 million last year, looked like it was about to suffer the fate of such failed MVNOs as Amp'd Mobile and Voce Wireless—and in the case of Voce, subscribers literally woke up one morning to discover that their phones had gone dead.

But the sale to Virgin Mobile means that your Ocean, Drift, Fin, or other Helio handset will keep working for the foreseeable future—and yes, Virgin Mobile seems intent on keeping 3G service and GPS features intact.

And while Virgin Mobile has been a pre-paid service up to now, the carrier says it's looking to Helio to make a move into the post-paid market—so no, Helio users, you won't have to switch to a pre-paid plan. (That said, will Virgin start offering Helio handsets on a pre-paid basis? We shall see.)

Now, if you liked mingling at your local Helio store, you'll probably need to find a new hangout. According to the press release, Helio "will make significant cost reductions," including cuts in "distribution and headcount"—and that means store and kiosk closings (not to mention layoffs).

Also, Virgin Mobile says it plans on "centriliz[ing] the Helio offerings under the Virgin Mobile brand," which sounds like we'll soon be seeing the Virgin Mobile Ocean 2, not the Helio Ocean 2.

Still, the news could be a lot worse—indeed, my own predictions were a lot more dire than what actually ended up happening.

Helio users—what do you think of the news? Relieved, or disappointed?

Related:
Virgin Mobile to buy Helio for $39M [AP via Yahoo! News]