July 17th, 2007

Here's where many of those orphaned SunRocket users will go

Posted by Russell Shaw @ 7:58 am

Categories: Packet 8, Predictions and Observations, Vonage

Tags: VoIP, Phone, Here, Russell Shaw

Now I know why SunRocket instituted their $199 a year plan. Perhaps not so much as a clever competitive marketing strategy but as a desperate move to raise cash.

Not enough cash was raised to sustain operations, or even to capture the interest of a lender or buyer.

With the shutdown of 200,000-subscriber SunRocket confirmed, I am wondering where all of these now-orphaned VoIP users go.

I have to presume there will be some sort of liquidation, and that the subscriber list would be the main asset to be sold off.

Even if the acquirer were to extend the type of enticing offers ex SunRocket subscribers “can’t refuse”, that’s no guarantee SunRocket subscribers would accept them.

So where would they go?

OK, let’s do some back of the envelope psychographics.

By virtue of the fact they signed up with a relatively unknown VoIP provider- and for VoIP itself- SR’s ex’s can be said to be ahead-of-the-curve risk takers.

But after they see the risk they took blew up in their face, will they still be inclined to go VoIP- especially with another provider seen to be on shaky ground?

Another provider such as Vonage?

I think your orphaned SunRocket user will stick with Internet phone service but look for a provider that is going to be around for awhile.

Om agrees, linking to an article featuring a quote from an ex-SunRocket employeee (I guess they are all ex-employees) pointing out “saving your phone number is not that difficult, because the numbers are not residing with SunRocket, but with one of their service provider partners such as Broadwing and Qwest. All you have to do is print out SunRocket’s statement, and tell the company you want to switch to, why you are doing it and use the statement as a proof. ”

Some, liking the independence of a single-service VoIP provider but looking for stability, might choose a service like Packet8. Others will use Skype or similar services as a place-holder for awhile, as they sort their options. Still some others will throw up their hands in “once bitten, twice shy” mode about VoIP, and go back to the landline phone provider in their area.

The majority though, will be prone to choosing a phone service operated by an entity that they’ve been doing business with for years. Someone like the Internet phone or branded digital calling service offered as a service bundle by their broadband ISP.

So if I am, say, Comcast or AT&T or Verizon I try to get rights to that old SunRocket subscriber list and offer sweet deals to those SR orphans.