Friday, August 10, 2007

Global Crossing Didn't Do It

TeleBlend's VoIP network had an outage in late July and there was some confusion about why. Perhaps it was as simple as a temporary financial issue between trading partners. Global Crossing and Level 3 Communications, as major suppliers to SunRocket, likely got stuck with significant bad debt when SunRocket went dark. So you might understand why the providers might be worried about further bad debt exposure related to an account that had just gone south.

In all likelihood there was simply a period where a single payment got a bit delayed and at least one of the underlying carriers moved to protect themselves. We understand TeleBlend had been making incremental payments to the underlying carriers, obviously to limit their risk.

That's not to say there couldn't have been issues related to the SunRocket and TeleBlend back office processes. Under the circumstances, a late payment makes the most sense.

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