SK Telecom, Korea's biggest mobile carrier, is overwhelmed with troubles both at home and abroad as its operations in the United States are challenged. The Seoul-based outfit has gone out to boost its Helio project of attacking the US mobile telephony market alongside US Internet service provider EarthLink. However, the bold scheme may fall into a quandary as EarthLink named Rolla P. Huff as its new CEO, who is famous for scrapping unprofitable business segments.

Observers projected the Helio project might be the target of Huff since the costly joint venture with SK Telecom accounted for most of the loss EarthLink posted of late.

SK Telecom and EarthLink joined to offer mobile telephony services in 2006 through a third-generation network leased from Sprint Nextel. The two companies have agreed to spend US$220 million each for the start-up, which they hoped would draw a total of 3.3 million users by 2009. The performance, however, is quite disappointing by showing the record as 100,000 subscribers after a year.

President of SK Telecom Kim Shinbae said in a press conference that SK will oost Helio even if the firm has to spend more than the expected investment.EarthLink also noted that it could hannel US$50 million more for the joint venturebut now it remains to be seen whether the new CEO will take the same approach. But experts are not buying the idea of Earthlink continuing its commitment as the two firms agreed in early 2005. If the firm succumbs to the request, its impressive bottom line records of 1.45 trillion won (US$1.58 billion) last year will be seriously dented.