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georgepan
join:2005-05-09
Wesley Chapel, FL
| Re: SUNROCKET can't be profitable at $16.58 per month Rocky-
Predictions of a collapse are a bit far-fetched without actual knowledge of true numbers. Service cost has been coming down tremendously, so they can probably make it happen at the price point they are currently offering. Of course initially they are "investing" in their customer base in lieu of advertising, but after the initial investment they should be able to run profits from thereon out. After reading some industry articles on how low cost per minute has dropped just in the last few months I believe that the $20 threshhold that is commonly seen as the break-even point for providing unlimited VOIP may be a bit high. In the long run they can probably make money at the $17.00 price point, as long as they don't continue to give away expensive goodies every year. 
Besides, those running the company are former MCI executives who had been responsible for very successful and profitable innovative platforms. They are not likely to engage in a temporary Ponzi scheme. | |
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RockyBB
Premium
join:2005-01-31
Longmont, CO
| Re: SUNROCKET can't be profitable at $16.58 per mo Hey georgepan, I wasn't predicting SR's collapse ... predicting only that IF the growth stops, THEN it would collapse.
It's obvious reading threads on this board that SR has a marketing plan that has appeal, that it has run its service in a way that inspires enthusiasm, and that they appear to be a responsible carrier that is succeeding at fulfilling its claims.
That said, you really really really have to admit that the CFO is calling the webmaster twice a day to learn what the signup counts are ... knowing that his CLEC bills are due, that his bandwidth bill is due, that his LD bills are due, his IT bills are due, his Uniden bill is due, his payroll is due ... The $199 is the fuel for the SR engine ... we read about P8's stock placement, and Vonage's private investments ... sure SR is private, and we can't know for sure, but my crystal ball says that SR's day to day working capital funding comes from its users instead of from professional investors that have evaluated the risk and can afford to lose it all...
I'll not yet withdraw my Ponzi analogy, but there are other less inflammatory analogies ... grocery CO-OPs and mutual insurance companies come to mind. Those companies return cash dividends to their "user/investors." SR seems to be providing its "dividends" in the form of discounted service rates relative to it competitors.
Nothing wrong with that...again everything is disclosed (we hope). Would make a good business school case ... "how to start a company by borrowing money at no interest from your customers for services that they could buy elsewhere without having to make the loan"... It sure makes sense that they're ex-MCI guys!
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| | | | lstevens
join:2002-08-17
Brookline, MA
1 edit | Sunrocket has substantial VC money from a very experienced VC Firm who validated their business plan in excruciating detail before investing... | |
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RockyBB
Premium
join:2005-01-31
Longmont, CO
| Re: SUNROCKET can't be profitable at $16.58 per mo said by lstevens  :Sunrocket has substantial VC money from a very experienced VC Firm who validated their business plan in excruciating detail before investing... that's good to know ... the bosses got their seed money from someone else ... first rule of a good businessman, put someone else's money at risk!
my statements were, of course, complete speculation (i.e. pulled out of my butt) based on some (not all possible) information and my own life experiences. and, of course, my guidance is provided free of charge with no guarantee of anything. you get what you pay for.
I find nothing nefarious in SR's marketing offer, and I don't think that they're swindlers or crooks. Perhaps you'll note a degree of envy in my comments!
Those that find SR's marketing offer to be compelling should enroll, recognizing that their $199 is at risk. Not my cup of tea, but different strokes for different folks. (BTW the free phones are not showing up on SR's website today, unless they're hidden or disclosed during the signup process.) Personally, if someone wanted to try SR, I'd advise the month to month plan only...if all is as everyone says, it's still worth $25/month... Avoid making no-interest loans... | |
| | | | artisticcheese
join:2004-11-09
Carrollton, TX
 ·Future Nine Corpor..
·VoiceStick
| Re: SUNROCKET can't be profitable at $16.58 per mo I think you still can get $20 a month deal with some coupon and if you want to get free phones you need to have a referal from existing customer or click on phone bird is standing on (intersting idea).
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»www.windowsvsunix.com | |
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RockyBB
Premium
join:2005-01-31
Longmont, CO
| Re: SUNROCKET can't be profitable at $16.58 per mo hey spm9999! although $199 might not be a lot to you, there are plenty of posters on this forum looking for free service, cheapest service, unlimited service... yesterday one dude even wanted to make free calls on Packet 8 without becoming a customer. For students, or disabled, or fixed-income, or just having a tough time, $199 is a lot to come up with, and a lot to lose if SR fails. that's why I suggested the m-t-m plan... | |
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PJIV
Premium
join:2004-07-13
Niagara Falls, NY
| Re: SUNROCKET can't be profitable at $16.58 per mo said by RockyBB :hey spm9999! although $199 might not be a lot to you, there are plenty of posters on this forum looking for free service, cheapest service, unlimited service... yesterday one dude even wanted to make free calls on Packet 8 without becoming a customer. For students, or disabled, or fixed-income, or just having a tough time, $199 is a lot to come up with, and a lot to lose if SR fails. that's why I suggested the m-t-m plan... Umm, this may be true but given the options out there, however Sunrocket is the cheapest startup cost. If you do the math, it would be better to charge the $199, and then pay it off month to month, then joining Vonage, Packet8, etc you'll save in the long run.
Also if you are on a fixed income, you would be looking to save money, and most likely high speed internet is not saving money, but that's neither here nor there. Sunrocket is a great deal for $199 and can not be beat! | |
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