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SunRocket in Trouble?
Possible cash crunch and now layoff rumors
There have been forum rumblings for several weeks of a cash crunch at VoIP provider Sunrocket. Now GigaOM posts the rumor that the company has laid off around forty employees. The provider has had a rocky life span, one that hasn't been helped by cable VoIP competition and major recurring outages.
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Mactron
el Camino Real
Premium Member
join:2001-12-16
PRK

2 edits

Mactron

Premium Member

6-8 more months SR

I'm in my 2nd year of 2Yrs for $199.
As long as SR hangs on until the end of that 2nd Yr. I'll have gotten more than my moneys worth with them.
Ya there are outages, but it's not enough to stop the Women of the house from gabbing away virtually non-stop.
What's up with women and the telephone ?..

hamburglar
join:2002-04-29
united state

1 recommendation

hamburglar

Member

Re: 6-8 more months SR

said by Mactron:

What's up with women and the telephone ?..
I guess it's like men and the remote control. Technology helped women gossip more efficiently and it allowed men to sucessfully avoid human contact and conversation Ain't it great!
pvera
join:2001-12-01
Reston, VA

pvera to Mactron

Member

to Mactron
Same here, 3 months into my second year with SR on the $199-for-two-years deal. I think I got my money's worth on the first year, if they do keel over I'll just convert my Comcast account into a triple play and my bill will stay more or less the same.

I do hope they pull through, the service is not perfect, yet for that tiny bit of money we hit that line literally nonstop, between work calls (I telecommute) and long distance calls to family.

tc1uscg
join:2005-03-09
Gulfport, MS

tc1uscg

Member

Where were the layoffs?

Gee, think they sent a few of those India call center types packing? All I can say is if they go down the tubes.. it's about time. Couldn't have happened to a more deserving provider. nuff said.
AJICQ499087
join:2001-12-01
Louisville, KY

AJICQ499087

Member

Re: Where were the layoffs?

I think the whole telco industry is going to be in for a major shake up. SR is going down the tubes! YMax Communications magicJack service is going to finish off SR.

elios
join:2005-11-15
Springfield, MO

elios to tc1uscg

Member

to tc1uscg
actuly its not in india its here in MO
i tryed to get a job over there a few weeks ago
Sunrocket can die in a fire for all i care
Expand your moderator at work

BucsFan
@centurytel.net

BucsFan to tc1uscg

Anon

to tc1uscg
I've never used Sun Rocket, but just thought I'd clear this one up a little. I do know for a fact that they do have a large number of American call center employees. I work down the road from a Sun Rocket call center that has at least 500 employees (or at least it did when I worked there back when it was MCI).

tc1uscg
join:2005-03-09
Gulfport, MS

tc1uscg

Member

Re: Where were the layoffs?

said by BucsFan :

I've never used Sun Rocket, but just thought I'd clear this one up a little. I do know for a fact that they do have a large number of American call center employees. I work down the road from a Sun Rocket call center that has at least 500 employees (or at least it did when I worked there back when it was MCI).
What? you mean after moving most if not all of it's call center ops overseas, they brought them back? Oh well, the damage was done by non-english speaking/understanding service reps. I heard they were bringing level 2 back to the U.S. but that was way way back (months after I dumped them).

Toadman
Hypnotoad
join:2001-11-28
Mystery

Toadman

Member

Long term prepaid contracts

That is the problem with long term - Pay $199 up front. I have though that about my viatalk contract as well. If they go belly up, there is no way your getting that money back unless you paid for it within the past 30 days and your cc company will actually let you do a charge back.

Caddyroger
Premium Member
join:2001-06-11
To the west

Caddyroger

Premium Member

Re: Long term prepaid contracts

said by Toadman:

That is the problem with long term - Pay $199 up front. I have though that about my viatalk contract as well. If they go belly up, there is no way your getting that money back unless you paid for it within the past 30 days and your cc company will actually let you do a charge back.
Viatalk is better shape then Sunrocket. Sunrocket gave the money they made on $3.00 credit on international calls, a free signature number, free phones, free activation ,free shipping. I don't believe they was even charging the taxes and fees. Billing goofed up by allowing in certain cases a third free number.
How can you make money with operations like that.
Plus the outages, billing and voice problems of late has not helped
bomber991
join:2003-03-22

bomber991 to Toadman

Member

to Toadman
Yeah, I remember my dad was telling me how when we lived in Kansas this new gym opened up offering lifetime memberships for something like $500 or $1000 dollars. Anyways he said everyone where he worked at got the lifetime membership, and then a year later the place went out of business.

elios
join:2005-11-15
Springfield, MO

elios

Member

Sunrocket = Bell Industries?

i have a feeling they got bought by some one the Sunrocket building over here thats there call center just changed there name on the door to BellIndustries
andytech
join:2006-05-10
Beech Grove, IN

andytech

Member

Re: Sunrocket = Bell Industries?

The Call center in MO was always owned & Operated by Bell Industries aka Bell Tech.logix. The Main Office is in Indianapolis, IN @ 8888 Keystone Crossing #1700. They are the Call center for them. They also provide call centers for other customers as well. In the past they provided support for small mom & pop ISP's as well as some larger ones. Before I left there was talk of SR taking over the call center permanently, but I never saw that happening. It seems also that Bell Industries is in financial trouble as well. Stock Ticker is BI.

DrewCapu
Giant Diehard
join:2001-12-19
California

DrewCapu

Member

It's because of all the shipping they pay

for people returning their hardware to get an "almost free MBP"

GilbertMark
Premium Member
join:2001-05-02
Gilbert, AZ

1 edit

GilbertMark

Premium Member

Re: It's because of all the shipping they pay

said by DrewCapu:

for people returning their hardware to get an "almost free MBP"
Hey is it true you can get a free MBP? I thought those were scams.

.oO (ha ha ha ha)

I would also attirbute some Sun Rocket issues due to their endorsing of freebie gift programs and all the cancellations they get.

screwtop
@foebud.org

screwtop

Anon

From a post on Fatwallet

"I heard they laid off 30% of their workforce today, no severence pay.

The 30% that know what they're doing (techs).

Word is they've got 30 days to find venture capital, or else they lock their doors, turn off your phone and you lose your number if you haven't ported.

I'm looking for a new voip carrier now.

I do not reccommend signing up for a plan now."

elios
join:2005-11-15
Springfield, MO

elios

Member

Re: From a post on Fatwallet

i think they got bought by some one like i said the call center over here in MO now says Bell Industries
10414459 (banned)
join:2007-04-23
Key West, FL

1 edit

10414459 (banned)

Member

Re: From a post on Fatwallet

SunRocket does not own the call center in Springfield. The call center is owned by a completely separate company, Bell Industries.

SunRocket merely contracts with Bell Industries for tier 1 support. The Bell Industries employees are not SunRocket employees, they simply read off of a script.

Sid5
Premium Member
join:2002-11-29
Santa Maria, CA

Sid5

Premium Member

I like sunrocket

I hope not. I signed up with them about 3 weeks ago. Its been pretty good. Only a couple of issues during calls. Im happy. Its my first VOIP so I cant compare it with anything.
Graycode
join:2006-04-17

Graycode

Member

Re: I like sunrocket

I hope not too. I just started my 2nd year. Also a couple of months ago bought 2yrs for a family member in another state.

Their service has been great, I haven't had any issues with the voice quality or reliability. It's been saving us quite a bit of money.
10414459 (banned)
join:2007-04-23
Key West, FL

1 edit

10414459 (banned)

Member

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-telep ··· /?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."
tivoboy
join:2004-05-10
Menlo Park, CA

tivoboy

Member

Re: Say it ain't so, SunRocket

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.

jester121
Premium Member
join:2003-08-09
Lake Zurich, IL

jester121

Premium Member

Re: Say it ain't so, SunRocket

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.
tivoboy
join:2004-05-10
Menlo Park, CA

tivoboy to 10414459

Member

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.
tivoboy

tivoboy to 10414459

Member

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.

ptrowski
Got Helix?
Premium Member
join:2005-03-14
Woodstock, CT

ptrowski to 10414459

Premium Member

to 10414459
Looks like Om was true....

»andyabramson.blogs.com/v ··· -ru.html

Jane
@mchsi.com

Jane to 10414459

Anon

to 10414459
Not a rumor. 47 employees. No severance. Execs to hourly employees. Sunrockets ship has sailed.
tmc8080
join:2004-04-24
Brooklyn, NY

tmc8080

Member

new competitors?

I wonder if skype and similar low cost or FREE web based alternatives aren't the death-nails in SunRocket's coffin.
How can skype do their service for $30-50 per year ($50 if you want an incoming phone number). There still are other providers who have similar $199/year deals. or $15-20 per month deals.. like AOL, Yahoo, MSN, Broadvoice, etc. Isn't Bell Industries part of one of the telcos (new AT&T, Qwest, or Verizon)? Maybe it's time to consider some consolidation in VOIP companies so that they can go the distance.. for some reason this go-it-alone with no alliances is not a wise move, as the Telco/Cablecos love making riptide waves for 3rd party voip companies and have the cashflow they need to be successful.