Fred Pitts Back in Service with TeleBlend

It took 10 days, but TeleBlend customer Fred Pitts FINALLY is back in service.
"My first try to call home this morning continued with the "fast busy" signal; by midmorning, however, it was working," Pitts says. "So, while disappointed to have been without incoming service for such a length of time, I am thankful today that I am back up. I hope everyone else will be back in service soon as well."

A gracious comment, I'd say. At least some disgruntled SunRocket customers who picked TeleBlend as a replacement say they have churned to other providers such as Packet8 and Vonage.

A harrowing experience, to be sure. Perhaps it is only fair to note, though, that of the 60,000 transitioned customers, nearly all made the flash cut without much apparent disruption. Call it 99 percent. But one percent of 60,000 is still 600 customers, and it will be scant comfort to know that (hypothetically) 54,000 customers had no real issues.

That's the devil with mass market services, though, isn't it? Getting 99 percent of things right still generates thousands of trouble tickets (I'm not suggesting TeleBlend had issues with as many as one percent of its accounts, by the way. Just making the point that a very small failure rate in a mass market application or service can result in huge trouble ticket queues.)

Skype apparently still is having a major outage itself today, and as older posts today note, at&t and Cisco have had issues this month as well. S*** happens even to companies as large and sophisticated as Cisco and at&t.

Voice Quality is Getting Worse: What Would You Expect?

Those of use who grew up with one phone company got spoiled by the reliability and quality of its communications network (despite "customer service" so bad it became an oxymoron)," says technology journalist Mark Stephens, whose pen name is Robert X. Cringely. "Those of us trying to save a few bucks by piggy-backing voice services on the Internet are starting to get what we've paid for."

Skype itself now is experiencing an outage that might take 12 to 24 hours to fix (Aug. 16).

There's a larger trend at work here, and it happens in virtually all formerly highly-regulated businesses when deregulation and new technology hit. Remember when airlines were highly regulated, and could not compete on the basis of price? How did they compete? Amenities and other non-price differentiators. Of course, prices were high and not that many people flew.

Deregulation hits and all of a sudden price becomes a key competitive weapon. Of course, when people start paying lots less, something has to give. Like amenities. But more people fly now.

So here's the problem communications service provider executives face: they can't afford to run "gold plated networks" for the same reason airlines cannot. Obsessive concern about voice quality and service availability are one thing in a highly regulated environment. Such concern is quite something else in a highly competitive marketplace where customers in fact choose to pay money for service that is quite a bit less intensive than it once was.

In a nutshell, the business problem is that operators cannot afford to maintain the same obsessive levels of quality when customers demonstrably don't care. Mobile communications is the best example. Everybody uses mobile service. And everybody knows it simply is not as reliable as wired phone service. Nor is the audio quality as good. But it's a wild success, anyway.

If people will not pay you to maintain a higher quality of service, can you afford to do it? That's the problem the global communications business faces. People are voting with their pocketbooks: buying services with lesser quality on some metrics because the overal utility of mobility is so high.

In other cases, such as over the top VoIP, they are voting with their wallets to buy cheaper services with less reliable service.

Get used to it. In virtually every deregulated, formerly monopolistic industry, overall quality will drop. Of course, there's another trend as well. New, higher cost alternatives will develop. Because some people need high quality enough to pay for it.

IP communications are very valuable. They are very useful. But they are not as robust as the old public switched network, if only because of things like latency. The services can be made more rugged, of course. It just costs money.

Service Not Entirely Restored

"Make it 10 (days without service), says TeleBlend customer Fred Potts. "Last Friday, Bill Fogg of Teleblend posted a reply after a comment I made on your blog. He sent an email follow up asking for a number where he could reach me. I sent my cell number and have sent follow up emails to him each day. The silence is deafening."

TeleBlend Restores Service

Finally! TeleBlend has got service back up for customer Marc Kruskol, who I would say was one of the maddest TeleBlend or SunRocket customers I have heard from. Kruskil says his outage lasted from last Monday, August 6 until approximately 2:30pm PDT Aug. 14. The problem, I am pretty sure, has to do with termination partners in the Van Nuys area who either took some time to come to identify and strike business deals with TeleBlend, and then to get all the portability and software issues ironed out. Nice to hear that Kruskol now can use his VoIP service.

Yesterday, customer Fred O. Pitts reported that he still didn't have service. "I am now eight days and counting without incoming service." Pitts now says (Aug. 14) that his service still hasn't been restored. That's disappointing. Make it nine days.

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.

TeleBlend Quietly Provides SunRocket Service

If you have been following the SunRocket transition story, you might not have wondered just how it was that SunRocket went dark July 16, but nearly all SunRocket customers were still able to call in and out and use voice mail until the SunRocket creditor hard stop of Aug. 5. As it turns out, TeleBlend has quietly been paying Global Crossing and Level 3 Communications, as well as some others, to maintain service to all former SunRocket customers while TeleBlend conducted its marketing activities.

And the only reason TeleBlend wanted to keep that quiet was to avoid its own customer backlash. How's that? Customers are mad at SunRocket. If they then learn they are getting service from TeleBlend, even if free, there's still the possibility of ill will when the lights finally do have to go out at SunRocket. So TeleBlend said nothing.

Where Have SunRocket Customers Gone?

TeleBlend, the new provider formed to serve former SunRocket customers, says it has 60,000. CEO Bill Fogg says TeleBlend added 3,000 the week of Aug. 6 and 1,000 on Thursday, Aug. 9. Vonage says it has gotten about 20,000 and Packet8 says it also has gotten about 20,000, according to Huw Rees, 8x8 VP. That accounts for about half the former SunRocket base. And there may be significant movement this week and next. As it turns out, nearly all former SunRocket customers have quietly continued to get service that has been paid for by TeleBlend. So as service has gone completely and finally dark on Aug. 5, people who might have done nothing because they were still able to use their SunRocket service will have to do something else, for real.

SunRocket to Packet8 Transition: Why it is so Easy

Most former SunRocket customers who have moved to Packet8 service have had their new service up and running within three days, says Huw Rees, 8x8 VP. So why is the Packet8 service faring better than TeleBlend, in terms of transition ease?

Serendipity, at least in part. Global Crossing and Level 3 Communications were the primary SunRocket transport providers, and Packet8 works with both of them as well. So when a former SunRocket customer wants to switch to Packet8 service, pretty much all it takes is the letter of authorization, about 24 to 48 hours to get the account re-pointed to Packet8 and away from SunRocket, and time to ship out a new analog terminal adapter.

That's not to minimize the face that 8x8 has had quite some years to get its back office and warehouse operations into place. It's just that having common transport providers in common with SunRocket has made the logistical process of "porting" accounts easier.

Remarkable Calm Despite TeleBlend Snafus

Given all the challenges new VoIP provider TeleBlend has faced since deciding to make a major play as a continuity provider for former SunRocket customers, including at least one significant service outage in the first couple of weeks, there isn't much squawking by disaffected customers in the blogosphere. It's somewhat odd. For an operation that jump started itself fast, and then had to transition customers from another provider, there were bound to be transition problems. Billing issues here and there, administration portals not displaying real time data, password issues or adapter resets were almost certainly to be expected.

Having worked at start up operations where we had to support Cisco networking gear, Nortel phone systems and the circuits to support them, I know what it is like when all the systems are not fully baked. And, in fairness, there is simply no way TeleBlend was going to have its back office fully baked before stepping right into the customer support morass.

I'll be willing to bet, however, that I've encountered more software problems setting up a new Vista PC than most SunRocket customers have had getting their transitioned services to work.

Maybe customers are more unhappy than they appear to be expressing. If so, we'd like to hear about it. But we aren't hearing all that much. Which might simply mean most users might have encountered a glitch here and there, but that service for the most part is working the way it was before.

The adage we are fond of repeating is simply that customer satisfaction and loyalty do not correspond all that well for mass market communication services. Happy customers will desert. Conversely, it is well worth noting, somewhat unhappy customers will not necessarily churn. I wouldn't say I am happy having to use Vista. Neither would I say I am ditching Windows for a Mac, though I have been considering it for at least a year.

Maybe I'm just not hearing what is going on in SunRocket land. But I am neither surprised there have been porting and support issues, nor concerned TeleBlend will fail to get its operational processes in enough order to support the services and price points it has chosen. How much support can a user really expect for a $12.95 a month service? That's no slam on TeleBlend; just a recognition that price points that low will not allow for much support infrastructure.

Still, I have been surprised at the relative calm, despite all the difficulties.

TeleBlend: More Steps to Ensure SunRocket Transition

In an effort to ensure it has the resources in place to manage a fairly sizable inflow of former SunRocket customers, should that occur, TeleBlend executives have signed an agreement with Sherwood Partners, the entity winding down SunRocket, for hardware and software assets that will make any customer transition seamless.

TeleBlend, a “preferred” provider for former SunRocket customers, is offering these customers a heavily discounted monthly subscription rate of $12.95 for the duration of their previous annual contract with SunRocket.

We won't know more until this afternoon, but it seems logical to assume the deal gives TeleBlend ensured access to in-service analog terminal adapters and the provisioning and operating systems used to keep them in service, at least through any transition period where customers are moved over the existing TeleBlend back office and network.

The agreeement does not seem to affect the earlier "preferred supplier" deals Sherwood struck with Packet8 and TeleBlend.