Is The Collapse Of SunRocket Another Nail In Vonage's Coffin?

from the to-the-ground dept

The slow death of SunRocket (which has now been confirmed), has prompted a lot of discussion about how to move to a new service if you're a SunRocket customer. Obviously, any SunRocket customer is going to have a few inconvenient days as they try to make the switch to another VoIP operator, if they do so at all. Also, just as Vonage's woes made it harder for SunRocket to raise funds, SunRocket's collapse could end up hurting Vonage. If Vonage customers start to freak out that they could lose their phone service as well (a prospect made more likely by the ongoing litigation against the company), then they may preemptively flee, looking for a more stable service. The phenomenon, whereby doubts about some sellers end up hurting more reputable services, is what economists would call a market for lemons, and this would seem to be a classic example. Meanwhile, Vonage investors have fled the scene long ago, as Vonage shares languish at all-time lows.

Filed Under: voip
Companies: sunrocket, vonage

Is SunRocket In Its Death Throes?

from the no-more-users dept

Late last month, we reported that SunRocket, the second-biggest independent VoIP company was having some problems as the fundamentally poor economics of the the VoIP business caught up to it, and VoIP patent issues hindered its ability to attract further funding. Now, Broadband Reports says it looks like the company could be finished, as a poster in their forums said it's no longer taking new users. While BBR is treating this as a rumor, the folks there were unable to get the company's order system to work, so it doesn't look good. The burgeoning VoIP patent thicket doesn't help things, but the real issue is the falling cost of voice calls. While companies that can tack VoIP into a bundle -- like cable companies, which are seeing a lot of success with their VoIP offerings -- can make this work, it's not going to get any easier for independent companies. Update: BBR has another report that SunRocket may have laid off all but 20 to 25 of its employees in advance of a sale to the owner of another small VoIP company. Such a deal would, in all likelihood, merely postpone SunRocket's demise rather than prevent it.

Filed Under: voip
Companies: sunrocket