The multimedia device features an improved Ultimate Inbox client, Helio Connect social networking client, ActiveSync support, Microsoft Direct Push email support, 2.0 megapixel camera with video recorder, 1xEVDO packet data, Opera HTML browser, larger landscape QVGA display, microSDHC expansion slot, media player with DRM support, sliding standard and QWERTY keyboards, speakerphone, and Bluetooth with stereo audio support.

The device is now available from Virgin Mobile for $250 after new 2 year agreement with an additional $101 instant online rebate bringing the total to $149.

The Ocean 2 features a slightly thinner and longer body compared to its predecessor, a wider 2.6 inch QVGA display, revamped HTML browser with tabbing support, Helio Connect for one click access to social networking, Google Maps with GPS support, microSDHC expansion slot, speakerphone, 2.0 megapixel camera with video recorder, and revised dialing pad/QWERTY keyboard combination.

The device will be available February 12 in limited quantities.

All images below available in HD, click to enlarge… 

CTIA Wireless IT really is not as much a newsmaking show, as it is a showcase of where the industry has been. Microsoft didn’t show Windows Mobile 7, HTC didn’t have a booth, and Verizon didn’t even talk about open access for consumers.

Probably the most exciting part of the show, is giving us a first-hand look at the devices headed into the holiday buying season. And, without further ado, here they are:

Sprint

Sprint had their full holiday lineup on display. The HTC Touch Pro and Diamond are in the Windows Mobile area below, and live shots of the BlackBerry Curve 8350i are in a previous article.

Windows Mobile

Kyocera

Kyocera’s phone section was buried in a back corner. But, we did find some new models… and WiMAX gear as well.

PCD

PCD introduced itself at the show. Shortly after being spun off from UTStarcom, as UTStarcom divested its wireless phone assets, the company had few new products on display. The Virgin Mobile Shuttle (pictured in the Virgin Mobile section) was the only new handset. And, unfortunately, we also learned that the SMT5700 was cancelled on AT&T. The EDGE-only, still Windows Mobile 5.0 smartphone, is now headed to South America for release.

Verizon Wireless

Verizon had little to put on display. In fact, the entire booth was dedicated to Open Development; Verizon’s do-it-yourself MVNO solution. Not peep was made about users submitting their own devices for approval.

Research In Motion

RIM showed off their just-announced BlackBerry Pearl Flip 8220 for T-Mobile. Nextel’s Curve 8350i was covered in a previous article. Also shown, the BlackBerry Curve 9000, set to launch shortly on AT&T.

Virgin Mobile

Virgin Mobile showed off its new Shuttle from PCD, meant to bridge the gap between low-end Virgin Mobile and high-end Helio phones. The phone will launch as a Virgin Mobile device, with Buddy Beacon pre-installed.

As we previously reported, Virgin Mobile’s acquisition of the Helio has resulted in a continuation of the Helio brand. Virgin Mobile will position the Ocean 2 as its highest-end phone, in an effort to migrate customers from low-revenue Virgin Mobile phones, to high-end Helio phones and plans. Virgin Mobile also is using their new Shuffle phone, to encourage migration by adding Helio features such as Buddy Beacon to mid-range Virgin Mobile phones.

Some prominent features include a QVGA display, both a numeric keypad as well as a full QWERTY keypad, EVDO, stereo Bluetooth, microSD slot, full HTML web-browsing capabilities, and A2DP support.

Both Mobile Virtual Network Operators (MVNOs) operate using the Sprint network. Helio also signed a roaming deal with Verizon Wireless, to have full access to their network when Sprint service was not available.

Virgin Mobile will utilize Helio to target high-tech consumers, an area that Virgin Mobile has struggled to gain traction with. The existing A La Carte plans that Helio offers will be extended, and Helio phones will now be sold at Best Buy retail stores. In addition, Helio services such as Buddy Beacon will be rolled into Virgin Mobile.

To this end, the company announced Shuttle, a Virgin Mobile phone with several Helio features. While offering only a sub-set of the features, and higher prices for data, the Shuttle will be a key mid-range play to sell to customers.

By offering seamless data services between Virgin Mobile and Helio, the company hopes to drive low-end customers towards Helio after they have become acquainted with the carrier. Helio maintains one of the highest data Average Revenue Per User (ARPU) rates in the industry, a key money maker for any MVNO.

Virgin Mobile remains Sprint Nextel’s only company-owned prepaid service on their CDMA network. They are the only national carrier to not offer a first-party prepaid service.

SKTelecom first surfaced in the US market thanks to a partnership with Earthlink which gave rise to the MVNO Helio, which was the first carrier to begin bundling unlimited data and messaging access with voice plans in 2005 and began to offer phones and devices developed jointly with SKTelecom.

This deal includes the assumption of $10 million in debt, 170,000 current Helio customers, and the addition of Helio’s customer platform which will allow Virgin Mobile to enter the highly lucrative postpaid services market, with 20% of Virgin Mobile customers currently leaving for postpaid services.

The deal is expected to be finalized in the third quarter, at which time the total amount of debt is expected to be reduced by $35 million in accordance with the completion of transactions relating to the elimination of Helio’s retail footprint, redundant network capacity leases, and the additional total investment of $50 million from both Virgin Group and SKTelecom in exchange for preferred stock and seats on the Virgin Mobile USA board of directors.

This finalizes weeks, if not months of speculation on the apparent health of the MVNO started by Earthlink CEO Sky Dayton in 2005 in an attempt to bring innovation to wireless industry by introducing handsets and devices that were data and messaging oriented in order to draw a niche of tech-savvy consumers, which was less than successful in practice due to its walled-garden approach, while also being criticized for then expensive service plans which bundled unlimited data and messaging years before the current shift towards the same model by the major carriers.

Update: Helio has launched a FAQ page regarding the acquisition by Virgin Mobile detailing the gradual shift to the Virgin Mobile brand while still continuing to offer Helio products and services to new and existing customers.  Since the purchase will not result in the closing of Helio opertations save for the retail footprint, the addition of the of the former Helio subscriber base means that Virgin Mobile will continue to enfoce current Helio customer agreements and ETF policies instead of allowing service cancellation without a termination fee.

The new device is expected to have 1GB of internal memory up from the 256MB of the original model along with a microSDHC expansion slot, a 3 megapixel camera with 30fps VGA video capture, upgraded browser with Flash support for direct viewing of video streaming sites such as YouTube and other types of sites without dedicated applications, and a touch-sensitive directional pad while still retaining the dual slider form factor.

Further information suggests that the device is expected as soon as July with Best Buy now expected to carry the device along with the rest of the current lineup from the MVNO once a highly speculated distribution deal is finalized between both companies, though this can change at anytime.

The company has stated that the initial report by the Dow Jones and Reuters was groundless.  The company has also confirmed that the South Korean carrier still remains committed to the Helio venture but added that it continues to look for ways to expand its presence in the US.

With talks taking place internally at T-Mobile for a possible acquisition of Sprint, there is speculation that two other companies are looking to merge. Helio and Virgin Mobile are also in the first stages of the ‘proposed’ deal.

With both being MVNOs, Helio’s merger with Virgin Mobile would create a larger customer base which would result in higher bulk purchases of wholesale service from Sprint as they both work off of Sprint’s CDMA network.

SK Telecom’s Helio and Virgin Mobile are both known for targeting the younger demographic. Helio’s customer base tends to spend more on their monthly service (average of $85) while Virgin Mobile’s customers average about $25 a month. The merger of the two companies would benefit each other as they will be able to combine the average and high end users. With Earthlink backing out of Helio and with both companies showing poor financial earnings, Virgin Mobile’s retail strategy can help Helio reach a wider audience.

The functionality can be enabled by checking email from any supported email account, which the program will then prompt for the user to enable the functionality.  Users are reporting that the functionality works as expected on both POP and IMAP email retrieval configurations. The feature works with any email service and is included at no additional cost to users.