The good news is that Sun Rocket doesn’t have to spend any more money on e911, because they pre-built it into their infrastructure and offer it free as part of their plans, unlike others who charge extra for it. The bad news is that at $199, there is little hope for them when it comes to making money. An excellent post over on Broadband Reports forum says that at $16.58 a month, it will be tough for the company to make money, given that many put break even for these “eat-all-you-can” plans at about $20 a month.
And since they are giving away a 2-phone system for free, which can cost around $90 in retail, the profits remain as elusive as say chances of San Francisco Giants in the NL West. In addition, they are layering it with other freebies like $3 in international long distance minutes – which the poster estimates is 100 minutes to Germany or UK. They have to be losing money on these calls, since they have to pay termination fees to carriers in those countries. An additional free number is also on the menu. Want to leave SunRocket? No problems, You can, anytime and there is no cancellation fee.
Of course, one doesn’t really know how much money the company is spending on advertising in order to snag customers. It has to be lower than the reported $300 in customer acquisition costs for Vonage. I have not seen their ads anywhere except as part of Google AdSense and a few other locations. I guess, they will have to ramp-up in order to compete, but that would make profits even more elusive. From a consumer perspective, SunRocket is truly nice service, though this morning there are sporadic reports of their service being down. Their website is down for “upgrades” they say. via