SunRocket's discount price: clever marketing or desperate move?

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Could not disagree more

Sunrocket has been growing at a very fast clip. They are now the second-fastest growing "standalone" VOIP provider with about 10,000 customers added each month. Adding the $9.95 plan is the natural expansion of SRs successful business model. Sunrocket has achieved almost 100% compliance with the FCC ruling in regards to E911 while almost all other VOIPs are scrambling to get there or have not made any efforts. Those other companies are effectively banned from adding any more customers in areas they have not achieved full E911 in.

Om Malik shows an astounding lack of knowledge of the VOIP market. Sunrocket started national business in December of 2004. In one year of being in business they have achieved almost 55,000 customers up to this point. Packet 8's customer base is a little over 80,000, ATT CallVantage is at 57,000 at this point. Considering how much longer these two have been in business marketing their products nationwide Sunrocket's growth has to be considered a success for their business model. Sure, there is Vonage, but with the $9.95 product as well as expanding to many more locations around the country by recently adding Level 3 to their list of CLEC partners, Sunrocket is obviously accellerating growth to the point where they will pass Packet 8 as the Number 2 stand-alone VOIP, setting sights to close in on Vonage's numbers eventually.

Skype and IM-based telephony are different products altogether, requiring computers to be on at all times. Many people want a service that is akin to their current landline setup, with a phone or multiple phones active with dialtone without any thought whether the computer is on and clean of viruses and spyware. The standalone VOIPs compete for growth for their particular type of product mostly with cable-based VOIP, but prices are usually much higher, even with triple- or quadruple-play incentives.

Sunrocket's move to a $9.95 limited minute plan is an excellent business decision, IMO. Nothing about it smacks of "quiet desparation," quite the opposite. Mr. Malik could not be more wrong with his comments on this one.

Posted by: georgepa_z   Posted on: 12/12/05 You are currently: a Guest | Members login | Terms of Use

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