Monday, March 16, 2009

VoIP Providers are Folding

Announced this morning on Twitter, Acredo laid off its staff. Acredo is an Orlando based hosted VoIP provider that seems to be using an Avaya based PBX as its core. Acredo wasn't cheap either: $50 for the base rate, not unlimited usage either, plus extra for the phone.

Acredo was the second Orlando VoIP provider to layoff. VOX Corp. has offices in Orlando but has HQ in NY state. VOX's funding partner had to stop funding due to losses with the stock market. Even though VOX had over 100 resellers - members of NCTA, FISPA and WISPA - it couldn't get to cash flow. And cash flow is key right now.

Certainly, we will be seeing more failures. One reason: there are over 1000+ VOIP Providers and the only message is "we are cheaper". The VOIP Providers have to get their sales and marketing efforts in to high gear in order to increase revenues.


"Laurus has reduced funding, and Vox is not yet cash positive. But Vox continues to increase VoIP revenue each month, reduce costs, and inch closer to breakeven. And the imminent launch of a major Vox customer with mobile VoIP services (UTGI) represents a tremendous opportunity to become cash positive almost over night. So our business model has not ‘failed’, but hit a somewhat normal funding speed bump."

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