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VoIP Systems

Nuvio Picks Through SunRocket Debris

VOIP service provider SunRocket Inc. has shut down operations and is starting to move its customers to competing phone services.

Phone calls into the company's sales department yielded a recorded message stating that SunRocket was no longer taking such calls. In the telephone service business, that's not a good sign.

SunRocket had raised about $80 million in three funding rounds. (See SunRocket Fuels Up With $33M.) No official statement has been made by SunRocket announcing the company's demise, but employees who were recently laid off by the company were given letters stating the company was going out of business, according to Joe Woodbury, VP of marketing for competitor Nuvio Corp.

Nuvio announced today it would be offering one month of free service to "recent SunRocket customers that were adversely affected by the company's reported financial difficulties." (See Nuvio Offers Helping Hand.) The company has even created a Website specifically for transferring SunRocket customers over to its own service.

Nuvio says it mostly targets small businesses but couldn't resist swooping in to nab a potential 200,000 new customers. [Ed. note: Because price-sensitive consumers are the best kind, right?] (See SunRocket Breaks 200K.)

"There's a lot of people always trying to undercut you and sell it for cheaper," says Woodbury. "But we know that if you're only charging $8 a month, you're not going to stay in business."

So if $8 a month won't cut it, what will? Apparently, $16 a month. Woodbury says Nuvio does not compete on price, but it does have a “Safe Landing” rate of $199.99 per year for former SunRocket customers.

"People are willing to pay a little more for stability," says Woodbury.

Neither SunRocket nor its backers -- BlueRun Ventures , Mayfield , and DCM - Doll Capital Management -- returned calls seeking comment.

— Raymond McConville, Reporter, Light Reading

zwixard 12/5/2012 | 3:05:17 PM
re: Nuvio Picks Through SunRocket Debris Phone service providers without access to consumers' homes have no future.
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