VoIP Reseller Model in trouble?

Is the VoIP reseller model in trouble? First Level 3 Communications took its lumps and shuttered its hosted PBX service, (3)Tone (which at one time had 100 resellers) there is news that even others are having trouble making reseller model work. According to Phone Plus magazine, Armstrong Cable which was a reseller of Vonage VoIP is considering deploying its own VoIP service and getting out of the resale business. Some resellers of New Global Telecom’s (NGT) 6Degrees are also having trouble. This is actually an interesting piece, which looks at the small and medium sized businesses and their adoption of VoIP. It is amazing how difficult the market is proving to be, and basically reminds us that we might need to temper our hopes for VoIP in the SMB as well.