Blog Post

The SunRocket Is Down For The Count

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.”

86 Responses to “The SunRocket Is Down For The Count”

  1. SunRoket Loser

    My phone still works but not sure how long. Not sure how am i going to retain my existing number. it’s my bad that i recommended couple of guys to go for it recently. It’s a bad time

  2. Somebody posted this message on another blog

    Get the legal system and government involved.

    File a complaint with the FCC at:

    Mention something like:

    SunRocket, a VoIP telephone provider based in Vienna, VA disconnected my prepaid telephone and E-911 service on July 17, 2007 without ANY required advanced customer notification or alternative service options, leaving me at significant risk without 911 capabilities. The company’s executives should be arrested and jailed for putting approximately 160,000 households at such risk.

    Also contact your local Attorney General and demand that the executives that made the decision to leave customers without phone service and E-911 service be arrested for public endangerment

    Here is a link to that blog

  3. Ronald Rimes

    I have used SunRocket for over 4 months now and this is terrible. I can’t believe I’m losing my service right now. Are they going to refund at all? I have gone searching for another provider and found their pricing seems fair. If anyone gets a refund can you please post back?

  4. I have used SunRocket for over 2 years. Most of the time with good results. Had one fried gizmo (down for 2 days)and maybe 12 other hours of downtime in 26 months. Today at 6PM Central my SR voicemail stopped working. I can call outbound on SR and I can receive inbound, but callers can not leave VM. Going to start looking for another provider. Bummer…

  5. Rodney Peterson

    Well as of 9:22pm MDT on 07/16/2007 my sunrocket line is still active for Local and out of state calls and receives call from my cellphone. However I do not know how long it will work. I am new to sunrocket as of July 1, 2007. Boy did I pick the wrong company! I will be figuring out how to get my $200.00 back.

  6. I signed up for a 15 month $244.00 residential plan less than 2 months ago. Nice to see my average cost per month was only $122, about 500-600% higher than I was paying with Verizon.

    It was nice to see that they put up an announcement about the company on their website and the transition plan for their customers phone service (that’s a joke).

    Once again, some of the folks who where wheelers and dealers from the rock & roll days of telecom industry (1970-80s) fail to give a shit about their customers nad run away without facing the music. I’m calling the VA Attorney Gerneral to look into the fraud committed on customers. I hope the former executies have a nice nest egg to pay for their defense.

    Would it have been that hard to contact a couple other VoIP carriers and develop a plan to convert customers, and then publish it? Nah, easier to run away like little girls.

    I wonder about people who use this service as their exclusive home or business service and need emergency 911 service. And please don’t tell me it still works…my phone is dead (no dial tone) and has been since 4PM today.

  7. 16 July 07, 8:15 PM Pac Time (2015 International Time). Had problems with our phone. Thought I needed to rebot the gizmo, so did. No improvement. Called SunRocket 800-786-0132 and got their standard opening recording, “SunRocket, the no gotcha phone company”, followed by, “We are no longer taking customer service or sales calls. Goodby”.

    So, I guess I should have been looking at things online or listening to the news these past few days.

    Now I wonder where that leaves us?

    Paul D

  8. pisdoff

    I cannot call out of state on my Sunrocket service. When I call their customer sevice line it says they are no longer accepting calls. I just signed up for a year- $250 total -30 days ago and transfered my 30 year telephone # over. I’ll be calling my credit card company and local tel tomorrow morning first thing.

  9. Didi Tang

    I am a reporter who is working on this story. My interest is that SunRocket has a call center in Springfield, Mo., which my newspaper covers. I just want to know if anyone of you are willing to talk to me on the record.

    My contact: 417-837-1374. Thank you!

  10. SR didn’t want to bother distingushin between business and residential use. Their only concern was to acquire as many subscribers as possible. If they lost $ on some: so be it;
    “It’s only venture capital. It’s not like it was real money.”

  11. Gents,

    Sorry to hear about Sun Rocket’s struggle as a corporation and service provider. I have tried various services, Vonage, Skype, Packet8 and finally found the one it delivers everything it says. Best price, quality, features and customer service. I have used this service in the U.S. and internationally for a few month and I am totally satisfied. I can only recommend this people, magicjack is what we want in a phone service.


  12. I have been a sunrocket customer for two years. While the quality and facilities could not keep up with early growth, the service has been pretty stable, and a good value. Under these types of situations, folks should begin exploring the best “bundle” of video/data/phone that is offered. You don’t want to be the last one turning out the lights with this company. Port those numbers quick!

  13. I’d hope SR might just merge with ViaTalk or one of the other VOIP companies that doesn’t gouge their customers like Vonage does. That way they could just flow from one into the other and not disrupt server or anything like that.

    Here’s hoping.

  14. Brian from Georgia

    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???

  15. techuntangled

    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.

  16. 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.

  17. 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.