More Trouble At #2 VoIP Firm

from the the-slide-down dept

Fri, Jun 29th 2007 1:48pm — Joseph Weisenthal

The patent imbroglio between Verizon and Vonage may prove to slowdown the advance of consumer VoIP, but for companies involved in the space, the real problem is basic economics. Since the cost of a phone call is rapidly dropping to zero, a voice pure play like Vonage has its work cut out for it if it wants to make money. While Vonage's poor stock market performance has been a reflection of its woes, there have been rumors of troubles at #2 player SunRocket. Word now is that the company has canned a large number of its employees, including some top executives. It's hard to know how a company in SunRocket's position can turn things around, given how they're positioned in the industry, particularly as the broadband operators are doing a good job of getting customers to sign up for voice services.

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Anonymous Coward, 29 Jun 2007 @ 2:54pm

In the near future, I see basic telephone service becoming a free service from all telcos. That way they can make more money in the volume of internet services they offer because people don't have the added cost of the phone line itself anymore.

Such a step should increase competition and help to advance the deployment of broadband, VoIP, and digital TV services, among other things. The concept of dial tone as a revenue source is dead, and I think that will soon be realized.

Now if they will just give us flat rate packages for long distance calling (i.e. $24.99/month for unlimited long distance within the US, like Vonage has), then we'll really start seeing the competition heat up. Like basic dial tone, standard long distance is going the way of the buffalo because VoIP and cell phone services all have unlimited free long distance. If the telcos don't adapt soon, they will die a horrible death, or at least suffer miserably for a while until they can pick up the pieces and change their business model.
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tek'a, 30 Jun 2007 @ 4:25am

Re: they will die a horrible death.
problem with that hope for advancment is the current actions. forseeing a future with less of them in it, telcos are doing their part to reach tomorow.

in this case it means trying to break the backs of any who would oppose them and having their carcass hung on the rusty nails of Law to block any who would come behind.
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Thornton, 2 Jul 2007 @ 6:00am

I have worked for telcos for years. They will never give away phone service.
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