July 24, 2007

"SunRocket Postmortem" - Not quite the right lesson

SunRocket Postmortem: Virtual Everything Means No One Really Gives A Damn - Consumerist

So they leased their lines, outsourced their call center, and except for an office in Vienna, VA, were for all intents and purposes, a virtual operation.

Beware doing business with companies that have no fixed assets (remember Amp’d?). Makes it much easier for them to treat customers like a one-night stand.

I like Consumerist and all, but I happen to not agree with this lesson learned. The problem isn’t that SunRocket didn’t have any fixed assets - the problem was that they have a fundamentally unsound business model. Go and see my post about subscription businesses and why they are hard.

After this bust happened, I found it amusing that a lot of people were looking at moving to Vonage. I wonder when they’ll go out too!

Posted by: dtc @ 8:00 am

One Comment to “"SunRocket Postmortem" - Not quite the right lesson”

  1. david watson Says:

    If you were a SunRocket customer, it is better for you to shop around first and see which one provides the best services in terms of voice quality and customer service. I heard that Lingo is offering special deals to ex-SunRocket customers through their local and long distance calling plans.

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