10414459
join:2007-04-23
Key West, FL
1 edit | Say it ain't so, SunRocket
I agree with this article. This is my third year with SunRocket and it has basically been trouble free.
»blogs.zdnet.com/ip-telephony/?p=1938
"Om’s been hearing that pure-play VoIP provider SunRocket has recently laid off some 40 employees. Some mid-level executives are said to be in this number.
Om asks us to regard these reports as rumors for now.
I think that SunRocket’s 200,000 subscriber count gives them some shelter agains the storm, but should this talk be true, this would constitute a more than symptomatic cough in the underdog quest of non-bundled VoIP providers to compete with the broadband bundlers of telecom and cable.
I’ve not used SunRocket, but I’ve heard of high marks for their call quality and customer service. Free equipment, plus some innovative plans including $199.99 a year and as low as $9.99 a month. Try getting that from the broadband monopoly bundlers.
Should the day come when there’s no SunRocket as a consumer VoIP choice, North American VoIP users would have one less quality offering to choose from." |
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tivoboy
join:2004-05-10
Menlo Park, CA
| Technically, a company that does a prepay has to carry not only ALL of the revenue on the books as deferred, but also a portion of the liability (which would be the money to pay BACK to subscribers) in order to remain within GAAP, and to get further credit.
So, there would be something should they go belly up and shut down, as well as all these people are essentially creditors and would have a high liquidation preference in bankruptcy. |
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jester121
Premium
join:2003-08-09
Lake Zurich, IL
 ·surpasshosting
 ·ViaTalk
| No, they have to record the prepayment as deferred revenue (which is a liability) but presumably each month they would accrue 1/12th of each subscriber's $199 and move it to earned revenue. Your post makes it sound like it's a double whammy.
If someone asks for a prorated refund, they decrease cash and decrease the deferred revenue liability account to offset it. |
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tivoboy
join:2004-05-10
Menlo Park, CA
| reply to 10414459
thanks, I would have put in all that detail, since this is what I do, but I didn't think it was completly necessary for the post but, thanks for making it a perfect statement now.
Indeed, At day one of purchase, all revenue is deferred. Some companies will acrue revenue, recognize it, reduce it from deferred and book the revenue daily, monthly or quarterly. Since they are delivering a measurable service daily, they could probably do daily. And, they probably want a daily update to take daily on the road show.
All money does go to cash though, and they just spend it, retaining the amount that they are required to for whatever purpose. |
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tivoboy
join:2004-05-10
Menlo Park, CA
| reply to 10414459
and technically, if a customer asks for a refund and they grant it, they have to decrease accrued revenue for the period in which the refund is already booked as well. Which is why most companies like to book monthly, or quarterly. Roll up the refunds, and reduce them from staged revenue for accrual. |
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ptrowski
Got Helix?
Premium
join:2005-03-14
Putnam, CT
clubs: | reply to 10414459
Looks like Om was true....
»andyabramson.blogs.com/voipwatch···-ru.html |
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Jane
@mchsi.com | reply to 10414459
Not a rumor. 47 employees. No severance. Execs to hourly employees. Sunrockets ship has sailed. |
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