Another consumer VoIP provider faces hard times

Convergence & VoIP This newsletter is sponsored by Logitech As Travel Costs Skyrocket, Companies Find New Routes. U.S. airlines have raised fares about 20 times over the past two years, mostly on business-class travel. That's why more companies are now traveling over the Web, using video conferencing solutions from Logitech. Our webcams and headsets keep workers connected and productive using VoIP and other services. See how Logitech is moving this revolution forward. Network World's Convergence & VoIP Newsletter, 07/11/07 Another consumer VoIP provider faces hard times By Steve Taylor and Larry Hettick The Washington Post reported last week that SunRocket, a consumer VoIP service provider, was cutting back its staff by about 30 employees — representing about a quarter of its workforce. SunRocket offers similar services to Vonage, using what we call a “bring your own broadband” (BYOB) connection. The company was founded by two former MCI executives in 2004 and is privately held. The company has specialized in low-cost calling plans coupling VoIP calls with 12 custom features, including an “Annual Edition” plan for $199 per year with unlimited calling to the United States, Canada, and Puerto Rico; a “Limited Edition” plan for $9.95 per month with 200 minutes of calling; and a “Monthly Edition” for $24.95 per month. The company also offers international calling to China and many other locations for a penny-a-minute. SunRocket reported 200,000 subscribers in April 2007 making it about one-tenth the size of Vonage. Compared to Vonage, the company’s coverage area is more limited. Also like Vonage, SunRocket faces increasingly steep competition from cable company VoIP offerings and traditional phone companies that offer wireline voice plans that are bundled with broadband and video services. Manage Insider Security Threats Experts say 75% of security threats come from inside your organization. Watch the latest Network World Editorial Perspectives Webcast today, "Security From the Inside," and learn which technologies and processes best protect your intellectual property and assets inside the perimeter. Click Here to View Our analysis: We’re a little disappointed to see SunRocket face hard times, but its difficulties aren’t unexpected as both consumers and enterprises alike begin to buy its services as a double-play or triple-play bundle. Yet we continue to hope that even though BYOB VoIP providers face diminishing market growth, the cable company and telco competition will keep wireline voice plans affordable.   What do you think? Post a comment on this newsletter

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Contact the author: Steve Taylor is president of Distributed Networking Associates and publisher/editor-in-chief of Webtorials. For more detailed information on most of the topics discussed in this newsletter, connect to Webtorials, the premier site for Web-based educational presentations, white papers, and market research. Taylor can be reached at taylor@webtorials.com Larry Hettick is an industry veteran with more than 20 years of experience in voice and data. He is Vice President for Telecom Services and Infrastructure at Current Analysis, the leading competitive response solutions company. He can be reached at lhettick@currentanalysis.com This newsletter is sponsored by Logitech As Travel Costs Skyrocket, Companies Find New Routes. U.S. airlines have raised fares about 20 times over the past two years, mostly on business-class travel. That's why more companies are now traveling over the Web, using video conferencing solutions from Logitech. Our webcams and headsets keep workers connected and productive using VoIP and other services. See how Logitech is moving this revolution forward. ARCHIVE Archive of the Convergence & VoIP Newsletter. BONUS FEATURE IT PRODUCT RESEARCH AT YOUR FINGERTIPS Get detailed information on thousands of products, conduct side-by-side comparisons and read product test and review results with Network World’s IT Buyer’s Guides. Find the best solution faster than ever with over 100 distinct categories across the security, storage, management, wireless, infrastructure and convergence markets. Click here for details. PRINT SUBSCRIPTIONS AVAILABLE You've got the technology snapshot of your choice delivered to your inbox each day. Extend your knowledge with a print subscription to the Network World newsweekly, Apply here today. International subscribers, click here. SUBSCRIPTION SERVICES To subscribe or unsubscribe to any Network World newsletter, change your e-mail address or contact us, click here. This message was sent to: networking.world@gmail.com. Please use this address when modifying your subscription. Advertising information: Write to Associate Publisher Online Susan Cardoza Network World, Inc., 118 Turnpike Road, Southborough, MA 01772 Copyright Network World, Inc., 2007