Sun Rocket is Dead

Posts: 429 · Posted: Tue Jul 17, 2007 12:53 pm Post subject: Sun Rocket is Dead

I'm surprised nobody mentioned it, but yesterday afternoon Sun Rocket (supposedly the #2 VoIP carrier) suddenly closed its doors without warning. The DSL Reports forum is on fire with Sun Rocket subscribers reporting intermittent or no service beginning that evening.

Yesterday afternoon the call center in Missouri, which employed about 200 workers, noticed a sudden stoppage of inbound calls but nobody knew why. Shortly thereafter, a letter came in from Corporate HQ in Virginia, telling everyone to clear out their desks and go home. Game Over.

http://www.dslreports.com/forum/r18660180-SunRocket-Days-are-OVER

Presumably, it was irresponsibly low pricing and wreckless spending that finally caught up with them. In doing a little due dilligence, I found some information on Vonage's financial health. While not earth shattering, it's worth noting. "Revenue will be $850 million to $900 million with marketing expense topping $400 million for the year. Add it up and Vonage will lose $150 million to $170 million adjusted for various items."

http://blogs.zdnet.com/BTL/?p=4507

Another article ( http://www.internetnews.com/bus-news/article.php/3584006 ) puts new customer acquisition costs at $213.77 per subscriber in 2005. Ouch. No word on 2006/07. Looks like the marketing expenses are killing them.

Does anyone have other links on Vonage's health? They obviously cannot keep this insanely high cash burn rate going forever, and will surely need to scale back on the marketing and/or find more cost effective ways to gain clients. My opinion is, given their huge subscriber base, they would get bought out before ever suffering a fate like Sun Rocket. I suppose it's not beyond the realm of possibility Vonage as we know it may be absorbed into some larger entity with deeper pockets some day.

Posts: 1 · New Forum Member Joined: Jul 17, 2007 Posts: 1

Just read the news about SunRocket and was checking out both Vonage and ViaTalk... I'm a bit nervous about Vonage though b/c of their legal issues with Verizon... and ViaTalk is offering to buy up to 6months of my SunRocket contract (i have 8 months left so i'd only be out 2 months)... anyone else have suggestions between Vonage and ViaTalk?

Posts: 1 · New Forum Member Joined: Jul 05, 2005 Posts: 1

Vonage should be advertising all over their site to convert SunRocket customers for free. If they could even pick up 10% of the people dumped they should have an extra 20,000 customers for almost no acquisition cost.

Posts: 73 · Posted: Tue Jul 17, 2007 2:43 pm Post subject:

I find it amusing that the SunRocket site seems to still allow you to sign up. Woo Hoo!!!

Posts: 192 · Vonage Forum Master Joined: Oct 08, 2004 Posts: 192

vonage-forum.com/article3093.html" rel="nofollow" target="_blank" class="postlink">Sunny Days Ahead For SunRocket Customers

Posts: 176 · Posted: Tue Jul 17, 2007 5:48 pm Post subject:

holocron wrote:

I find it amusing that the SunRocket site seems to still allow you to sign up. Woo Hoo!!!

Not really, after you fill out the form you get this response:

Quote:

Service is Currently Not Available

Note:

We are very sorry, but SunRocket service is not yet available in your area. We are expanding rapidly and would like to let you know when we launch service in your neighbourhood. If you give us your email address, we will notify you when service becomes available. We respect your privacy. Your contact information will not be disclosed to any third party for unrelated purposes.

Posts: 2135 · Posted: Wed Jul 18, 2007 1:08 pm Post subject:

Just to clarify the offer from Vonage to former SunRocket customers is:

Two months free service
Waived activation
Free shipping

Customers receive this benefit when they sign up for the U.S. Residential Premium Unlimited Plan.

Vonage can transfer qualified phone numbers from SunRocket to Vonage at no charge.

SunRocket customers interested in this offer can receive more information by calling 1-888-510-1820.

Posts: 5 · New Forum Member Joined: Jul 18, 2007 Posts: 5

Aww crap .. they charged me for shipping!!!

Posts: 4751 · Vonage Forum **MVM** Joined: Aug 30, 2005 Posts: 4751

SuperDave wrote:

holocron wrote:

I find it amusing that the SunRocket site seems to still allow you to sign up. Woo Hoo!!!

Not really, after you fill out the form you get this response:

Quote:

Service is Currently Not Available

Note:

We are very sorry, but SunRocket service is not yet available in your area. We are expanding rapidly and would like to let you know when we launch service in your neighbourhood. If you give us your email address, we will notify you when service becomes available. We respect your privacy. Your contact information will not be disclosed to any third party for unrelated purposes.

And their service line has a message saying that they are no longer taking service or sales calls.

Posts: 5 · New Forum Member Joined: Jul 18, 2007 Posts: 5

Michael1 wrote:

Aww crap .. they charged me for shipping!!!

Well I called and they credited me for the shipping which was great but I found out that that my adapter hasnt been shipped and I placed the order Tuesday so now it will be next Monday before I get it .. which means I will have been a week without a home phone (not their fault that SR closed its doors but it is their fault they are having warehouse issues .. When I called this morning I asked if they could overnight it given the delay on their end and the rep said no .. that they were doing all they could do).