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Summary:

The Sun Rocket it seems, has hit the deck. We had reported earlier that things were getting pretty tenuous at the VoIP services company. The Vienna, VA.-based company stopped taking new orders recently. The company is said to have had massive layoffs and basically is down […]

The Sun Rocket it seems, has hit the deck. We had reported earlier that things were getting pretty tenuous at the VoIP services company. The Vienna, VA.-based company stopped taking new orders recently.

The company is said to have had massive layoffs and basically is down for the count. The rumors have been appearing in the comments section of our site and Broadband Reports. We have not been able to reach anyone at the company.

There was some talk that Magic Jack was going to acquire the company, but when we checked with Daniel Borislow, owner of Magic Jack, and he categorically denied and said that he is not buying SunRocket.

SunRocket co-founders left the company in February 2007. The company raised over $80 million in funding. If you are one of SunRocket’s 200,000 customers, we sympathize.

Update: A former SunRocket employee has his take on the meltdown at SunRocket, who writes on his blog: “Internally, SunRocket’s politics went further and further in preventing effective execution of the technology vision.”

  1. Another layoff today…all but 20 people gone including CEO Lisa Hook.

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  2. Interesting… who is running the store right now?

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  3. I think these guys are running the show: Sherwood Partners: http://www.shrwood.com/

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  4. Om – I’m a current SunRocket customer and I just got off the phone with their Billing crew and asked a basic question of “are you going out of business?”. So here’s the response:

    SunRocket did recently complete a cost reduction effort to better manage costs in a dynamic and competitive environment. This action will best position the company to execute against its business plan.

    SunRocket remains committed to providing quality and the best value in digital phone service. SunRocket continues to take strides to improve the SunRocket experience for its members.

    SunRocket appreciates your question, we thank you for your continued support and hope that you find the new SunRocket just as exciting as we do.

    Hope that helps, while its not much, seems like the company is going to try to keep going forward.

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  5. No surprise Lisa Hook is gone. She is is no postion to be the CEO of any company.

    Chris Mannella is most likely in charge now.

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  6. This is bad news. I have 300 dollars worth of incomplete Sun Rocket contracts. I wonder if its possible to save my phone numbers or how long they will continue to last at this rate.

    Yet another reason to use Grandcentral or a real phone number for business cards and friends.

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  7. techuntangled Friday, July 13, 2007

    Not very surprising news. Vonage has about 50% market share among facilities-based VoIP providers, and companies like SunRocket have very little market share. VoIP market is still growing, but these small players with minimal market share will find it very hard to survive because of the high customer acquisition cost. Expect more consolidation/brankrupty in the VoIP business.

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  8. Their most popular deal was to prepay for 2 years… most of those customers have a good amount of time remaining on their contracts.

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  9. Sun Rocket will probably be devoured by the other sharks of the market…

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  10. Brian from Georgia Saturday, July 14, 2007

    I’ve been a SunRocket customer for 15 months now and am only 3 months into my 200 buck annual contract. I am hoping that this news is overstated and that they do indeed hang on and stay in business. That being said, I went to their website and their contract states that unsatisfied users can cancel at any time and get their pro-rata balance from their account reimbursed. I know this is unlikely since the business must be in dire financial straits at the moment. Has any SR customer opted out and received a refund of money in the past month???

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