One independent Internet phone provider that knows it must evolve or die is 8x8 Inc., the Santa Clara, Calif., company behind the Packet8 phone service.
He said cable firms often bypass small businesses, which tend to use phone company Internet connections.
The company 8x8 said in its quarterly earnings report Thursday that it was the “first major pure play VoIP service provider to generate positive cash from operating activities.”
The company said more than 8,000 U.S. businesses have subscribed to its phone service, representing 44 percent of its revenue.
Mr. Martin said Vonage’s model has been to pour money into growing at any cost and SunRocket was a “carbon copy of Vonage” with offers that made little sense. He said 8x8 rebuffed a SunRocket request for an alliance as its end approached.
“SunRocket is not unique, and I think over the next couple of months you’re going to see a couple of other players exit the space, hopefully in a more controlled fashion in regard to their customers,” Mr. Martin said. “We believe we could be one of the last players standing.”