Is SunRocket going the Vonage way? Yes. Like Vonage, Vienna-based SunRocket has also got up to evade the pressure of Cable VoIP. For which, the pure-play VoIP service provider has reduced its workforce by 25 percent or cut off 30 of its workforce.
SunRocket says it is a move to minimize company’s expenditure so that they can develop aggressive marketing strategy to challenge the cable players.
The three-year old SunRocket has now some 206,000 customers for its residential VoIP services and enjoys second position behind Vonage. However, SunRocket’s growth has declined steadily in light of strong competition from cable players (such as Time Warner and Comcast) who are offering hosted VoIP services.
As per the latest report, the cable operators have added more than 2.2 million VoIP subscribers in 2005 and another 900,000 in the first quarter of last year. They now hold nearly 60% of VoIP subscriptions, while pure-play providers dominate just 40% of U.S. customers. As the VoIP market grows rapidly, the cable companies will be heading towards a big battle for revenue.
