It was in 1936 that Margaret Mitchell published Gone with the Wind – the epic bestseller that was later adapted as a movie in 1939. Seventy-one years after the book, Gone with the Wind has been written again, this time by VoIP provider SunRocket Inc.
It’s been two weeks since SunRocket officially went out of business, leaving more than 200,000 customers orphaned and VoIP-less. That it left them orphaned is a shame, really. But wait – read between the lines, please. SunRocket had TWO HUNDRED THOUSAND customers, making it the SECOND LARGEST VoIP provider in the USA after Vonage. That, ladies and gentlemen, is an achievement in itself, and something to be mighty proud of, even more so when you think it did all that with less than two hundred employees and in s span of just three years. I’ve seen many VoIP providers come and go, but the bankruptcy of SunRocket – the ‘No Gotcha Company’ (more on that later) – left me disheartened. SunRocket was a leader, an innovator, a market champion. Unfortunately, it seems things went to SunRocket’s head, and it started biting more than what it could chew, leading to its ultimate downfall. Ladies and Gentlemen, presenting a VoIP Guide exclusive tracing SunRocket’s path through the times… a tribute to the VoIP provider called SunRocket.
It all started in 2004, when American telecommunications provider MCI Inc. went bankrupt following Accounting scandals in its books. Faced with unemployment, two marketing executives – Joyce Dorris () and Paul Erickson (who, by the way, invented 1-800-COLLECT) – decided to start out on their own in Vienna, Virginia out of pure circumstances. And so in early 2004, SunRocket Inc was formed, bringing to the customer ‘new choices, better value, and ultimate control of your home phone service.’ And they brought all this at bottom-line pricing, thanks to their dependence on a system called Voice-over-Internet Protocol. It was something new for the American public, but SunRocket was determined to change the industry by inventing ‘clever ideas to make the boring, fun; the confusing, simple; the difficult, easy.’ They had large-scale technophobia to get rid of, and they were determined to do it. All this, plus a commitment to the customer to never deceive him; never sneak in extra prices when he’s not looking – the ‘No Gotcha’ Company. A promise never to spring in unpleasant surprises in the form of hidden costs.
And SunRocket was an innovator – right from its early start. Charging just $24.95 a month (which later became $16.59 a month), they allowed customers unlimited domestic calls, voicemail and caller ID, allowance for international calls, two information calls per month (a rarity in VoIP services) and an two extra phone number with a distinctive ring and voicemail. Then there were innovations like the Signature Service, the ever-popular ‘No Gotcha’ (including no activation charges and cancellation fees) commitment, bundling in $3 of international calling in their regular plan (that translated into 30 minutes of calling to Europe and 100 minutes of calling to Canada), and adding a Short Message Service and a voicemail to email service. Wherever it could make arrangements with local CLECs, SunRocket offered enhanced 911. Otherwise it provided a 911 service similar to that of Vonage Holdings Corp., in which calls are forwarded to public-safety access points. Till this date, there are companies that do not offer 911 emergency services, and while it still breathed, SunRocket was offering ENHANCED emergency services to around 96% of its consumers.
In the last quarter of 2005, SunRocket revealed yet another Ace-in-the-Hole. A $9.95 per month offering that included enhanced 911 service; free calling features such as call waiting, caller ID, and three-way calling; 200 minutes of global calling; and unlimited inbound and SunRocket-to-SunRocket Internet phone calling. The $9.95 per month plan provided unlimited inbound calling plus 200 minutes of outbound calling to the U.S., Canada, and Puerto Rico, along with Enhanced 911. All taxes were included (No Gotcha, remember), and extra phone numbers and enhanced voice mail could be added for $3 per month each. This limited period scheme lasted till the end of 2006, but it did more than its share in helping SunRocket achieve its 200,000 customer base.
By early 2006, SunRocket extended its reach to San Antonio, thus extending its direct presence to around 75% of America. The rest of the year saw SunRocket expanding aggressively in all parts of America too. By the time 2007 began, SunRocket was employing 197 employees and had a customer base of 200,000 – it had begun three years ago with only 30 employees and no customers.
On July 16, 2007, disaster occurred. SunRocket Inc officially closed down with no warning given to customers or employees. SunRocket’s customer service line played a recorded message stating that SunRocket is ‘no longer taking customer service or sales calls.’ Roger Pondel, a spokesman of Bell Industries, which provided services for SunRocket, said in a statement that all 197 of its employees were terminated as of Monday, July 16, 2007.
It was the end of an era. SunRocket Inc – one of the best and most customer-oriented VoIP provider – was suddenly a part of history. Economics killed VoIP.
SunRocket Inc, dead or alive, I salute you.
This is a special article written by our VOIP news Editor Samarth Chandola.
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