Speculation about Helio's future has been all over the place the last month or so, with reports surfacing that it was a potential acquisition target. Turns out that speculation wasn't far off. Sources indicate that Virgin Mobile USA, another troubled MVNO, may be buying out SK Telecom's stake in Helio. Can pairing two troubled MVNOs make for one stronger one?By this point we're all too familiar with the sad refrain: Another one bites the dust. The 2007 calendar year saw the implosion of nearly every major mobile virtual network operator in the United States, including ESPN, Amp'd, Disney, and others. Hip Helio, and vaunted Virgin, are the only two that have managed to stay in the game. But just barely.

Both have been suffering of late, highlighting what is perhaps a doomed business model. This begs the question, will pairing the two companies actually make things better? I have my doubts.

SK Telecom has dumped half a billion dollars into Helio. EarthLink, the other entity behind Helio, also has contributed hundreds of millions of dollars. SK Telecom owns 69% of Helio, with EarthLink holding onto 28%. As of now, preliminary reports suggest that SK Telecom will sell its portion of Helio to Virgin Mobile USA, which will absorb the company, its assets, and customers. The brand name Helio will die off, and Virgin Mobile USA will emerge bigger, better, stronger. Or so the story goes, anyway. According to The Financial Times, the deal has been struck, though final paperwork isn't yet completed. An official announcement may be made as early as this week.

How Helio and Virgin are going to make this marriage work hasn't been detailed. Here are some points to consider. Merging Helio's devices with Virgin's service could prove to be problematic, even though both use the Sprint network. Helio subscribers may lose functionality of their phones, but this hasn't been spelled out.

Then there's Helio's content to consider. Helio offers a lot of hip services on the cheap. Its users are used to great plans at great prices. Will Virgin Mobile USA match those plans? Or will it force Helio customers to change up everything? Even with no specifics available, these points alone paint a bleak picture for current Helio subscribers. One thing Virgin has going for it is a much better distribution and retail presence than Helio does.

One final thought is where EarthLink falls into the mix. For a while, SK Telecom and EarthLink were equal partners in the Helio joint venture. Beginning last summer, SK Telecom surpassed EarthLink's investments and slowly built up more equity in the company. EarthLink stopped investing in Helio. What will happen to EarthLink's 28% share of Helio? Is EarthLink even a party to the discussions between SK Telecom and Virgin Mobile USA?

One thing is for certain. There are a lot of hurdles to overcome for the businesses to become aligned. How Helio and Virgin Mobile USA can clear those hurdles and forge a new, successful venture is up for debate.