More Trouble At #2 VoIP Firm

The patent imbroglio between Verizon and Vonage may prove to slowdown the advance of consumer VoIP, but for companies involved in the space, the real problem is basic economics. Since the cost of a phone call is rapidly dropping to zero, a voice pure play like Vonage has its work cut out for it if it wants to make money. While Vonage's poor stock market performance has been a reflection of its woes, there have been rumors of troubles at #2 player SunRocket. Word now is that the company has canned a large number of its employees, including some top executives. It's hard to know how a company in SunRocket's position can turn things around, given how they're positioned in the industry, particularly as the broadband operators are doing a good job of getting customers to sign up for voice services.