Smith On VoIP

Packet 8 CEO Alluded’s To More Industry Doom and Gloom

With VoIP subscriber growth set to slow over the next four years and the recent exposure of the weakness of the pure-play business model exposed, Packet 8 CEO Bryan Martin reveals that there are three or four industry leaders looking to get out of the VoIP business. According to Russell Shaw, Martin was quoted as stating that

SunRocket is not the only company having problems. We know of about three or four major players in the space that have significant customer bases, they’re both into both business and residential applications, and we’ve heard rumors that they’re interesting in exiting the market as VoIP service providers.

I would have to agree with Martin’s assessment that there are probably a few leading VoIP providers looking to get out. In any market there exists leading companies looking to get out of the game. After all, why not cash out now when you can still turn a profit on your initial investment - it is called an exit strategy. So while I believe there are a few service providers looking to get out of the business, I am not sure Martin’s statements mean there are more rocky days ahead for the industry or they are simply a bit of gamesmanship from a savvy CEO.

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