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Ooma: The Last Phone Bill You'll Ever Pay

(10 posts)
  1. Zev

    Master
    Joined: Aug '10
    Posts: 437

    No, I'm not on their payroll; I don't even want the freebies I'd get if I refer you, because it's too much of a headache. This is in response to Matt's post on this thread. Matt wanted to know how Ooma is going since I switched to it a few months ago. Ooma is a VoIP service that I switched my business landline to--they allow porting of landline (maybe cell too?) phone numbers, which is awesome because I've got business cards and stationary floating around out there with a phone number I've had for almost two years.

    Ooma is great. I bought their previous-generation base unit on eBay for a little under $200 and sprung for their Premier service, which primarily does "simultaneous ring" much like Google Voice (without all the technical problems) to my cell and Ooma landline, and whatever other phones I want to add (you need an additional base unit to have it ring at a second landline). The Premier is $10 a month. If you don't need it--and I'll consider not renewing in a year--your phone service is:

    $0 per month.

    To answer Matt's question more specifically, the service is seamless; it works exactly like a landline, with the quality you expect from it. A bonus: you get your voicemails emailed to you as an attachment (you can call in for them or press a button on the Ooma unit too).

    Caveat: I have Verizon FiOS, one of the fastest internet connections you can have. So I don't know how it will work on slower internet. I pay a little over $50 for the internet connection, but I write it off and I need it for my business.

    The Ooma iPhone app, however, is not ready for primetime. So far, it sucks, and it doesn't support incoming calls. Perhaps they'll get that together at some point; it's optional, and paid for in addition to the other stuff--$10 for the app, 1.9 cents per minute. It's also possible that the wifi on my iPhone sucks, and maybe Ooma Mobile works better on a better iPhone.

    The Ooma business model is another caveat: If no one springs for Premier, the business model looks a lot like a pyramid--it can't last forever without a revenue stream. But I suspect they have some tricks up their sleeve, and I further suspect that even the cheap Premier service is a very high-margin revenue stream--considering that Google Voice offers some of the same features for free.

    Posted 2 years ago #
  2. JohnnyH

    Expert
    Joined: Jul '10
    Posts: 1,365

    Interesting, thanks Zev... So it looks like you do have to get the old units to avoid a $10 a month fee?

    Posted 2 years ago #
  3. Zev

    Master
    Joined: Aug '10
    Posts: 437

    I don't think so. The "Telo" is the newer unit and I don't think you need to pay anything besides the cost of the unit. I bought the old unit to save $50.

    Posted 2 years ago #
  4. JohnnyH

    Expert
    Joined: Jul '10
    Posts: 1,365

    Thanks, Zev... Do you pay taxes on your unit? I'm seeing numerous references to $3-4 a month in taxes on the Telo Amazon reviews... Here's the calculator to for Ooma taxes in your area:
    http://www3.ooma.com/tax_calculator.php

    Regulatory Compliance Fee $1.59
    911 Service Fee $1.59
    Federal Universal Service Charge $0.29
    State and local taxes, fees and surcharges $0.00
    Total: $3.47

    I wonder when the taxes started... Too bad the revenuer got their foot in the door.

    Ooma looks like a great solution for my parents... They were worried about the complexity of my $50 Android HTC WIFI + GoogleVoice + Gizmo5 solution.. Ooma might also make money through international calls, which my parents do make. I hope Ooma is here to stay.

    Posted 2 years ago #
  5. George the original one

    Expert
    Joined: Jul '10
    Posts: 1,941

    Just to be clear, "Regulatory Compliance Fee" is not a tax. It is an accounting charge designed to appear as if it's a tax.

    Posted 2 years ago #
  6. Zev

    Master
    Joined: Aug '10
    Posts: 437

    @Johnny I haven't noticed any bills yet for taxes, and it's been a couple months. Perhaps I've somehow avoided this by prepaying for my Premier? (one year--came with a free porting of my landline)

    Update: Verizon belatedly raised the cost of my FiOS because I removed the phone part of the "package" they sold me. My savings by using Ooma will now be minimal. :(

    I've been reading about how high-speed (FiOS-like) internet is much, much cheaper in Europe and Asia than here, much like the average cell phone spend. This is where I get off the libertarian train, as I'm sure this phenomenon is due at least in part to regulation and antitrust, and the lack thereof here. All my NYC iPhone-owning friends talk about how shitty AT&T's data coverage is--this despite their $115 monthly bills--and I can't help but think that this is due to the oligopoly status of the telecom industry.

    Posted 2 years ago #
  7. Executioner

    Novice
    Joined: Nov '10
    Posts: 1

    Ooma changed their terms of service over the past year or so, such that new users will eventually be subject to pay nominal amounts ($12 per year after the first year) for regulatory fees regardless of which model they buy (the older Core or the newer Telo). Some reviews on the Amazon site break this down in better detail than I would be able to do here, so I'll be lazy and link to them below.

    Note Ashok Aiyar's customer review on the Ooma Telo:
    http://www.amazon.com/Ooma-Telo-Free-Phone-Service/dp/B002O3W4LE/ref=sr_1_2?ie=UTF8&s=electronics&qid=1290209474&sr=8-2

    Note also Jason M. Page's customer review on the Ooma Core where he confirms the addition of a yearly regulatory fee for new users (as of October 2009):
    http://www.amazon.com/Ooma-Core-VoIP-Phone-System/dp/B001C1MGKI/ref=sr_1_1?ie=UTF8&s=electronics&qid=1290209474&sr=8-1

    My wife and I purchased the Ooma Core back in November 2009 for around $225. We haven't been charged for any regulatory fees since then, although now that we are approaching our one-year anniversary I guess it will soon be obvious whether or not they are charged. Regardless, we were previously paying substantially more for phone service through our cable company than we are now (around $40 a month for cable phone versus $0 or $1 per month through Ooma). The quality of service is similar to our old Comcast voice plan, and SIGNIFICANTLY higher than cell phone voice quality (which in spite of its convenience makes for some really horrible-sounding conversations -- static, garbled noises, changing volume).

    I do not regret going the Ooma route at all. I would highly recommend it to anyone who already pays for landline service.

    Posted 2 years ago #
  8. retirebyforty

    Novice
    Joined: Nov '10
    Posts: 13

    I got Ooma last year and it didn't work all that well for us. We have a Wi Max connection. Wi Max has pretty good download speed, but latency and jitter is not great. The voice quality is not very good, my cell phone has better voice quality. I blame it on the internet connection and will switch to cable in 2011 and hope it improves the sound quality.
    I'm glad Ooma works out for you guys.

    Posted 2 years ago #
  9. Matt

    Apprentice
    Joined: Aug '10
    Posts: 38

    Let me ask a stupid question, since I couldn't find the answer stated clearly on their website. For the Ooma Telo: how do you hook up more than one phone to the interface? I think I saw more than one plug on the back, but can you conveniently allow two or three landline phones(all the same phone line) to use the unit without a 50 ft phone cord?

    Posted 2 years ago #
  10. ToniTexas

    Novice
    Joined: Dec '10
    Posts: 1

    In the spirit of ERE I dumped my land line and pay 60/year for Skype. $30 a year for unlimited calls to USA and Canada and $30 for a phone number. If I get a call and don't answer, I get a voice mail sent to my email acct. I also downloaded the free Skype app to my IPOD (got a earbud/mic at Fry's for $10), and use that as my cell phone whenever I am in WiFi range (all day at my work). I have AT&T DSL for 14.99/month.
    Cheers

    Posted 2 years ago #

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