Voice over the Internet, so far, has been a game of cheap minutes, shoddy quality, and unreliable connections. It’s also been a money-losing proposition. The promise of voice being free has remained just that - a promise. Palo Alto-based startup Ooma promises to resolve those frustrations in September 2007 while offering free voice calls for life.
In doing so, it’s relying on a very old tech strategy: Just as PCs shifted some functionality from mainframes into your house, Ooma’s boxes will handle locally some of the telecom switching that normally happens on phone networks. Go ahead, roll your eyes. I did too when I first met Andrew Frame, the founder of Ooma, over a year ago.
Frame, a former Cisco employee, came across as a paranoid startup founder hyping his company. “This will cause some major shifts in the voice business, it will make voice free,” he said.
But it’s clear Ooma is part of a large trend, one of chips and software commoditizing services. iTunes did it to music, Sling Media did it to television, and Ooma is on the right track to do it to voice calls.
That promise has attracted a number of investors: Draper Fisher Jurvetson, the Founders’ Fund, Draper Richards, WI Harper and Worldview Technology Partners are backers of the three-year-old company. From them, Ooma garnered $27 million in two rounds of venture funding. It’s not strictly true to say Ooma is offering free voice – after all, you do pay a monthly tariff for your broadband connection. Similarly there are other costs, including value-added services, the company plans to roll out later. The company will also charge a modest fee for international calls.
Ooma’s achievement was to build a slick box, which runs a couple of general purpose processors and embedded Linux, costing about $399. It will eventually be sold at consumer electronics stores with a promise: free voice service within the US.

The simplicity of the box masks complex technology. You plug it into your broadband connection and you are all set to go. You pick a number of your choice on the website. If you have an old fashioned landline, you can plug it into the box as well. A port allows you to connect to the kind of home phone network that most homes already have.
An optional device, called Scout, allows you to extend your Ooma network across your home via vanilla phone jacks. All your current handsets can plug into any phone jack. The phone rings, just as it always does. Using a hack that most DSL folk are familiar with, Ooma offers a second line that relies on sending information at higher frequencies, ones that are available outside of those used by the voice channel. You can use it to make or pick up a call on another handset without disrupting the first call. And like old-fashioned voice mail systems, you can listen to a voice message before picking up the phone.
So how does Ooma manage “free” voice calls? Say you call Manhattan. Ooma routes the call to an Ooma box to the 212 area code, with the local carrier accepting it as a regular outbound call. It works even if the destination number lacks an Ooma box.
It’s free to you, though it does cost the Ooma box in far-flung area codes, but most of the local call plans are flat rate and come with unlimited calling. Ooma piggybacks on existing phone services, bringing all the things you expect from a traditional phone service, like dialing 911. (Walt Mossberg gives his thumbs up to this service.)
In telecom lingo, this is called distributed termination. The more boxes on the Ooma network, the more termination points - and , more voice calls the system can carry to the public switched phone networks. This sounds eerily similar to Jeff Pulver’s Free World Dial-Up in concept. Execution is a different story, and we always can count on Jeff to think of the next big voice thing. Ooma has really done is basically take a media gateway and put it into its box.
Think of it another way: What the PC did to the mainframe, Ooma is doing it to the telecom switch. It’s a brilliant technological achievement, tempered by some serious regulatory and go-to-market challenges. These challenges are not simple.
I cannot overstate the wrath Ooma will feel from incumbents. Since Ooma threatens the carriers’ core business, they’ll do their best to crush it, arguing Ooma bypasses the local access regulatory structure. Don’t forget the mortal combat between Vonage and Verizon. If so, Ooma’s $27 million in venture funding will be nowhere near enough.
And Ooma will need to convince customers to buy the device. The $399 price tag for the box puts it out of range of people who need cheap voice: budget-conscious callers. Voice, local voice to be specific, is pretty cheap in the US, and that might cause adoption resistance.
It is a dilemma Frame and his team will need to figure out.
If you have any ideas, leave your comments below, or email Ooma using this address - gigaom@ooma.com. The first 50 people to email will receive a free Ooma box.
Update: During the beta test, you will need an incumbent phone line, according to Ravneet who signed up. The company did not reveal this during our conversation. Secondly, this incumbent requirement will go away in September 2007, when the product launches. I have posted some clarifications in comments, and will answer more of your questions. This post was written late at night, so I might have skipped a few things.
167 comments so far
1:37 AM PT
I’m very curious about this product. I currently use a melange of VoipDiscount, Y! Messenger, and Skype for business and personal calls. For domestic calls, they all work about the same. For international calls, there’s a big difference in pricing and call quality (Skype sounds better, but Y! Messenger costs half as much to some places in Asia). I can’t wait to see what Ooma’s pricing will be like and if the call quality to Asia is any good.
Oh and Om, in gamerspeak, it’s Mortal Kombat!!! The uppercase K is important…as is the screaming.
:P
1:40 AM PT
dude, i am old guy. mortal combat as in old people speak. did yu send the email. you going to get one to try out.
1:45 AM PT
I sent in an email and am very hopeful to try it out.
Also, the carnage of Mortal Kombat is ageless. Ha!
2:02 AM PT
I think I can hear completely free landline service creeping up from behind me. I don’t think it is very far away…
Cheers,
Aidan
http://www.MappingTheWeb.com
2:59 AM PT
So effectively, Ooma will be terminating out of the end users box? If so, what if I dont have an unlimited local plan?
3:21 AM PT
This is really interesting stuff. I’m looking forward to seeing their progress over the coming months.
Not sure if I’m too late to be one of the first 50, but I just sent an email to the alias a few minutes ago. Let’s see how it goes.
3:26 AM PT
I’m a Skype user as well and I find that it’s pretty good for what I paid $30/yr. I like the fact that there is the “visual voicemail” feature in the Skype interface and would like to see that in Ooma. Can you access the box remotely from a browser to grab vmail and change settings like vacation messages, forwarding, etc? I guess i don’t know enough about the unit to say that i would absolutely need one, but with the right set of features I would be content.
The only screaming of the phrase “Mortal Kombat” was in the movie’s theme song. I actually prefer the deathly tone of the game’s announcer to get things going.
3:47 AM PT
Why stop at the US? This would make perfect sense on a world-wide basis. Why not use the the same technology to route a call from the US to Singapore or from India to France?
4:31 AM PT
I’m not sure I get this. If I understand the way you’ve described it, the Ooma box on the terminating end acts as a media gateway and dials the local number over a local phoneline, transfering the VoIP call through as a locally terminated call, or something like that.
But, doesn’t that mean that each Ooma box needs to have a local telephone line? So, as an Ooma subscriber, I’ll need to keep my local telephone line and all I’m really saving money on is the LD charges. That’s not very compelling, is it?
Help me understand.
5:37 AM PT
I am writing this, but thanks I don’t want this box. Give it to another sucker who wants it. This technique has already been done and I have $60 box that can do this. If you don’t believe me ask David Beckemeyer. Please take back your heaped praise on their engineering marvel. It is neither brilliant, nor technical nor an achievement.
You fail to point out that one has to keep the incumbent’s line when you took the effort to highlight one has to have a broadband connection.
By the way, in my book such termination is not legal.
6:16 AM PT
….and Ashton Kutcher is their Creative Director.
I wonder if they plan on using him to go after the MTV crowd.
6:30 AM PT
Aswath,
Are you sure about that? I read elsewhere that the landline is optional.
6:39 AM PT
I don’t fully understand the technology, but my recommendation is to include functionality that will allow users to take mobile calls on a home phone handset.
I know that you can already purchase a system that allows you to take calls on a cordless phone system, but that can just handle one cell phone. most modern households have a one cell line per person. I have no need for a home phone line, but I do think it’s a pain to carry my cell phone with me around the house. I would like to see something like a office pbx system that is designed for the home.
6:47 AM PT
From Om’s Post:
“The simplicity of the box masks complex technology. You plug it into your broadband connection and you are all set to go.”
Does that answer a few questions?
6:49 AM PT
This is super cool. Free voice calls. I have been using Lingo for over 3 years, this looks like more savings in that direction. Can try it out.
What about the international calls? Can we make those?
7:00 AM PT
If you can give us free calls to Europe you will get a lot more subscribers.
regards & good luck
Ken
7:03 AM PT
If my calls are on occasion being terminated via another end-user’s legacy landline, doesn’t that give the other user an opportunity to eavesdrop on my calls? I believe it’s trivial to use an induction microphone to listen to a call carried over a POTS line without the callers being aware. While that user might never know who I am, the possibility of my calls being recorded by strangers is disconcerting.
7:30 AM PT
@Josh:
The induction microphone you are thinking of is the standard telephone connected to another phone jack in the house. The user may not know you, but will know the other end’s phone number. Since your friend is in the same geographical area as the user, may even be able to track your friend. I will be staying away from such service and if known will not accept such calls from my friends either.
7:33 AM PT
I have to completely disagree about the characterization of “voice over the Internet” quality. I hope all of your readers realize that if you use a POTS line most voice is actually carried over either private ip networks or the Internet (yes even if it’s the incumbent). The only difference is what’s it’s called and what’s being done to impede the free stuff and prioritize the revenue stuff.
It’s like saying “it was a horrible flight” (because it was so crowded” while your boss had a “wonderful flight” because it was cushy in first class. SAME FLIGHT — different experience because SOMEONE PAID MORE!
7:39 AM PT
If you want to make calls to landlines it would seem they would have to have a local gateway to get those calls off of the IP network and onto the PSTN. Perhaps they intend to have their own private network or subcontract other commercial local gateways/DIDs, and supplement their commercial transport terminating calls to Ooma users who have PSTN lines connected to their boxes. Least cost routing, if an Ooma gateway with PSTN line is available to terminate the call it is routed in that method, if not, the call is terminated by a commercial gateway.
Regardless, for the mass market that these companies need to reach, I believe it boils down to the user experience. Simple is better.
7:54 AM PT
I just read the Mossberg post that Om referenced. It does appear that the key to building their network is to get their boxes out there, with users connecting their landlines so they can be leveraged for termination, creating their own peer to peer network for grassroots interconnect and call routing in the process. I would imagine they have some type of QoS mechanism built into their boxes as well.
This is not a new idea, but certainly has merit in my opinion. MKC Networks, a PBX provider based in Canada, had the ability to peer their customers PBX systems in a similar manner, and the boxes could be leveraged to terminate calls, but I don’t think they ever commercialized the concept.
If Ooma can build critical mass and get enough of their hardware out there to create a good footprint, creating redundant paths for call termination by having multiple users in each area they need to terminate calls, the model is certainly feasible. As to how they will make money in the process, I’m not certain.
8:07 AM PT
Recently VOIP service provider Sunrocket went out of business after paying year of service fees in advance.
Ooma is offering good service but not sure in this market if it survives or not.
But the initial $399 fee is very expensive for phone service.
8:12 AM PT
No monthly bills and just buy Ooma Hub a small device that looks like answering machine. Great way to save phone bills.
8:18 AM PT
Lets see the response from people in the near future. The reaction from people will decide its worth.
8:25 AM PT
This sounds like a cool idea, using P2P tech to toss phone calls around. I’m glad of the advancements made in the internet//telephone area — the beginnings of internet phone calls had poor connection and sound quality, but not so much anymore. Now issues include cost and networks and such.
8:26 AM PT
There will many Indian IT Professional will be looking for cheap calls to India. This will be another area where you need to check out is how competitive rates you can give for international calling.
8:31 AM PT
This is interesting but it seems like Magicjack has more of a chance in this market. They leverage your PC hardware instead of requiring you to purchase dedicated hardware (which can be a plus or minus) and I suspect they are also using P2P routing in their software. Furthermore they have the additional revenue sources coming from the interconnect fees and the ads and don’t rely on any POTS integration. The major shifts in the voice business are going to come from eliminating all POTS lines. Combine this with VOIP over 3G and wifi phones replacing cordless phones in the home and you eliminate the need for conventional switched telephony. The communication channels are covered end to end. Throw in some nice user-controlled encryption and I’ll be a happy camper.
8:45 AM PT
The long distance calls - international - are still going to cost you money, though I bet a lot less than what the Bells charge you.
I agree with you guys this company’s target market is overseas, but why they choose to go after the local market is hard to understand.
8:45 AM PT
I meant they are choosing to go after the local market.
8:53 AM PT
This is just another prime example of gigaom getting in over its head trying to heap praise on a non-starter. Firstly, you spam stock posting about ebay, skype ect…then try to pump this bile. Please, please, you are about 1 step above valleywag here…between you and techmunch, I get plenty of laughs daily. Thanks for the grins.
8:58 AM PT
Russ,
not all Ooma customers need to have a local line. Some lines are obviously needed and the company is seeing those. They contend that it would be a few thousand phones in local dialing areas.
If you need more clarifications, please let me know.
8:59 AM PT
I am guessing they did not figure out how the eaves dropping on the phone line would be solved cos they user can split his phone line with a splitter and listen in on any terminated calls.
What happens when ur local company calls u to complain about exceeding fair use policy?
9:01 AM PT
Victor,
Your point about voice quality being bad is spot on. I have ranted about this and called out the incumbents on this as well. However, the side by side comparison is that the bells are doing slightly better job, compared to my own personal experiences with voip providers.
9:04 AM PT
Yes Aswath, you are right. It was done by David first. I agree with you - the termination and its illegality is going to be a hard one to overcome.
9:07 AM PT
Aswath,
you don’t need an incumbent’s line. There are a certain percentage of ooma boxes that need the incumbent line. if that is not available, then ooma will have their own local numbers for call termination. as for the technical achievement - from a mass market perspective, it is.
it is dead simple. unfortunately all the previous attempts have been quite difficult for an average Best Buy shopped.
There are also some subtle differences from PhoneGnome.
9:10 AM PT
If it can do better than Sunrocket it is worth. Most of the VOIP calls through major Inidan Telco’s to india cost 8 cents a minute and haven’t really seen any VOIP hardware vendor doing better than that. If it is reliable and you can carry the hardware whereever you have broadband it is still a winning solution.
9:25 AM PT
Just signed up and confirmed I’ll be getting a box! Thanks for the referral link Om!
I hope this is good. I’ve been debating going back to VOIP as our primary voice service since we moved from NYC and can’t wait to drop Verizon’s 100/mo BS.
9:35 AM PT
Thanks for the reference Om! I think I am gonna get a box too soon!
Irony is that I do not have a landline at the moment (SunRocket orphan here), and at this time Ooma really really needs a landline & broadband.
The landline requirement will vanish in September I guess.
9:42 AM PT
I can’t see the carriers allowing this to succeed, but when it comes to distributing the boxesI can’t see the carriers allowing this to succeed, but when it comes to distributing the boxes to those who are price sensitive, perhaps a partnership with a bank or some other firm eager to get new customers would be the way to go. The partner subsidizes the cost of the box and uses it as a way to nab new customers. However, it depends on whether or not the ooma business model revolves around selling hardware. Do we know how much the boxes cost to make? What’s the revenue model?
9:57 AM PT
Will this Ooma box work over a cable line? You mention the incumbents - are you talking just about ILEC incumbents, or will Ooma service run on a cable line as well?
10:07 AM PT
I take it i’m too late for the free ooma box?
10:12 AM PT
Sign me up. I would love to try it out firsthand. I’ve been looking for a good excuse to cancel my Qwest account. Free is a good one.
10:15 AM PT
Om, Apparently for the test period you do need a regular phone line. I signed up through you (thanks!), was confirmed, but then found out I can’t use the service with only Vonage as my “legacy” provider. I haven’t had POTS for years ….
Ooma says this requirement will be lifted around September as they go public with the service.
10:30 AM PT
I emailed am waiting for my free phone…I am a VOIP skeptic because I think all voice going over the traditional networks is data anyways. The only difference is that it gets converted to data at the CO instead of at home with VOIP.
But then again, stranger things have happened. Ooma could be the VOIP break we are all looking for.
10:33 AM PT
The buttons should be bigger.
10:34 AM PT
The question is how will they maintain the quality of the calls when whole neighbourhood start sharing the broadband DSL line for their phones and internet.
10:35 AM PT
give this a couple yrs and the telecomm industry will be crushed :)
10:40 AM PT
Om:
I was fortunate enough to get in on the free units…got one of the White Rabbit passwords to their site. Thanks, you rock!
However, according to their Terms and Conditions, I must keep a local landline for this service to work, contrary to posts on this. Their Terms and their signup pages for this beta contradict each other. The Terms say you must have a landline, the signup process pages say we can ditch the landline after the beta is done. OK Ooma, which is it. Sounds like we must have the landline to me.
This goes counter to the reasoning to converting to a service such as this. If one is converting to an alternate carrier such as Vonage, et al, we are doing so to drop the landline.
By their Terms, we must keep it. I had switched to Brighthouse Networks digital phone so that I could drop Ma Bell. My house has never been wired for landline…didn’t need to with VoiP. With Ooma, I’ll have to get a landline installed.
After making it almost to the end of the signup process, I had to say “no thanks”.
Michael
See their Terms on the phone line below…..
Your residential telephone line must permit unlimited local calling without per call or per minute charges, and you may use the equipment only while connected to that telephone line. You must authorize us to ensure that your residential telephone line is configured to work properly with our equipment and Services or you must undertake to do so yourself. You will be responsible for paying for any reconfiguration charges from your local telephone service company.
(b) 911 Emergency Calling:
Calls to 911 will be directed through your local telephone service line to your local telephone service company. Your 911 calls will be handled by your local telephone service company, not by us.
10:47 AM PT
Michael, thanks for the update.
Yes, that is during the beta test period. The way it has been described to me (and the companies lie) is that in september they have made provisions that you don’t need a local line from an incumbent.
It is trying to seed about 1,500 boxes that will help over come the PSTN land line requirement. I think they have also made plans to have local number s on tap in addition to get around this problem/requirement.
Of course companies can promise anything, and not come through.
is there a chance you can send me the TOS via email. info at gigaom dot com.
10:47 AM PT
Zoli, and others, I updated the post to reflect that.
11:00 AM PT
I give them 24 months before they are out of business.
11:00 AM PT
Other than the technical first (or not as the case maybe) the viability hangs precariously on a few critical success factors. Namely, the telcos not implementing a draconian short term price war, which they have the stomach for and OOma doesn’t. Also there needs to be large scale adoption strategy and currently this is predicated by a 399 dollar price tag. I think they’ll have to prepop the network a little more than the 50/150 they are on about.
11:08 AM PT
Dilip,
you are spot on about the pre-pop strategy and i addressed that earlier. i think the $399 price point is not going to work. i told the company as such - it is too much.
11:17 AM PT
It’s a wonderful idea, but faces major obstacles. As you’ve stated in your post, first you have the existing regulatory hurdles; is what Oooma is doing from an origination/termination perspective legal? Is someone (read a well-funded, quite powerful Bell) losing potential revenue? If so, the incumbent response - if the incumbents feel at all threatened - will likely be fierce. Given that the incumbents spend more money on the Hilll than any other industry, this is a difficult fight to win (just ask Frontline Wireless; from a Valley perspective Frontline is formidable, from a DC perspective, their power is quite limited). At least for the time being, the FCC seems pretty intent on keeping the incumbents as happy as can be.
Another major hurdle is that the business model (if the goal is to provide free/low-cost calling in the US; a different story once you involve non-US calling), is that while the incumbents are slow as molasses, it is unlikely to be long before they finally begin to offer free nationwide calling (or nationwide calling for a set monthly fee, like their wireless spawn). Once the incumbents do so, no one is going to buy a $400 box.
Maybe the Ooma box/technology/solution becomes more interesting in the hands of Google. If Google continues to drive at the small business market segment, develops a presence in wireless, and creates (for individuals and small businesses) a unified communications solution (fixed-mobile conversion/unified messaging/etc), then maybe the Ooma box serves a purpose, and its price-point becomes less of an issue.
11:17 AM PT
Hope this fairs better than Sunrocket.
Regardless, I’m in!
11:23 AM PT
I got a real cheap XACT usb phone for $10 at walmart, connected it and the fee was $8.85 Unlimited calls out for 3 months so its $2.95 a month.
I read other comments about the projected price point hey If the total setup cost is like $20 or so yeah Ill jump but even if its free and the box is like $400 or even close you can get a land line way cheaper.
Nobodys gonna pay that much for a VoIP box that other companies sell for $20-100 with built in wireless router on the $100 version
11:26 AM PT
Hi Om,
I’d like to give ooma a try. Are any boxes or chips available?
Thanks,
Sam
11:32 AM PT
Correct me if I’m wrong - I noted this on ValleyWag - but isn’t 911 free, even if you have no phone service?
From years ago when I lived in LA, I remember asking why there was a ring tone on my phone before service started - I was told that it was for emergency 911. Same with when I lived in Tucson.
So, couldn’t you just keep the phone jacks, and not need service?
11:33 AM PT
Guys - If you haven’t already, take a look at Lingo. This company is solid as a rock - backed by Primus, the 5th largest telecom in the world. Don’t switch to a provider who’s going to bite it like Sunrocket a few months down the road (ViaTalk, Packet8, etc.).
Special SunRocket to Lingo promotion at http://www.lingo.com/sunrocket.
Can’t beat it. Become a Lingohead!
http://www.myspace.com/lingophone
11:38 AM PT
I’m curious as to where the pricing came from. Purely based on an evaluation of the manufacturing cost of the hardware? Based on the replacement cost of alternate technologies (vonage for X months)? Certainly free sounds good to me.
11:39 AM PT
Each person that gets accepted into the beta should get 3 chips or numbers that they can give to friends so they can sign up too. Can someone who got in sent me one please :) fearsimon(at)hotmail(dot)com
thanks so much :)
11:43 AM PT
I am excited about the new revolution OOma is trying to create.However, being the eternal skeptic that i am, the pre-requisite of retaining your incumbent services precludes any new customers to sign up.
Also, as a consumer i feel attempting to target and attract the cheap-call making demographic with a $400 CPE might shun away potential believers. Initial market penetration is heavily dependent on introductory pricing especially when recent history teaches us differently[SunRocket charged $200 for a similar device and the customers are irate since the company has since dissolved]
Cheers
-VJ
11:45 AM PT
Om:
Check your mailbox for what you asked for above.
Reagards
Michael
11:52 AM PT
oops the correct website URL is http://www.myteleblend.net/
11:56 AM PT
I want to believe but after being burned by constant issues with Skype and Vonage, and going back to normal landlines, I’ll see what people are saying a year or two out.
A promise is one thing, performance is another.
11:56 AM PT
Maybe they will go to a lease business model like DISH Network and DirecTV. Lease a box for $10-$20 a month with unlimited calling. If the customer cancels, they either return the box so it can be reused (or they pay $399 on their credit card for it.) The key to that business model is to require credit-worthy customers and a credit card. It works well for both DISH and DirecTV–look at their profits.
11:58 AM PT
Forgive my bluntness, but what it sounds like we have here is a very nicely designed ATA with a POTS pass-thru.
Is the phone line requirement being called for at present due to the company’s not having E-911 in place yet?
Michael
11:58 AM PT
This is something interesting. New technology…I hope big telecom companies will not find loop holes with patents etc..to bring the service down. Like verizon went after vonage.
Regards
Athidhi
12:00 PM PT
I think this is not going to work. This is nothing more than a Analog Telephone Adapter commonly known as ATA. And these guys giving it a term Media Gateway just for marketing. Secondly regulations will never allow free ride on public landline ifrastructure.
12:03 PM PT
My existing land line, local only, costs $31/mo. At $400, this proposed service gives an approx. 11 mo. Payback - in the first year. If true that the existing land line requirement will drop in Sept., then the up front cost of $400 is certainly not excessive, but should save thousands of dollars within a few years, assuming the company survives, for current land line customers, but that is a different question. Most existing land line contracts are not free. Further, the monthly land line fees tend to increase each year.
12:09 PM PT
Will 911 work as usual once you give up a land line connection? Sounds good otherwise
12:23 PM PT
I wonder if there are any big ISP’s or data network providers out there that don’t have current aspirations to provide voice services. If Ooma were to partner with a fairly entrenched ISP or data provider, they could bolt the Ooma device onto a data plan offering, and get into the voice business with minimal investment and disruption to their core business.
If has proven much easier for the cablecos and data providers to upsell voice service because they already have the relationship with the customer. The data provider could then partially subsidize the hardware costs for Ooom’s box, and give them an instant customer base.
They would likely give up some things in the process of negotiating such a partnership, but they will likely need some allies along the way.
12:34 PM PT
I would like to try this out. Looks very cool and integrates seamlessly with both Internet and Phone line. Could be the next generation of calling.
12:52 PM PT
I would like to try out. I just wonder with the pricey price $399, can you just add a little 2.5 or 3.5 inches LCD and little camera like webcam then using your box will be them same as using Skype or Yahoo Messenger without PC.
John
1:03 PM PT
I wonder how this will be able to compete when most of the triple play packages reduce the cost of phone service down to nothing.
Would still love to try it out.
1:05 PM PT
I would love to try one of these boxes and I do happen to have an extra land line in the house. Thanks
1:09 PM PT
Are some of the Ooma boxes (”seed Ooma”) required to provide the PSTN lines to relay incoming calls from other Ooma callers to local incumbent local carrier? Is there any risk of compromising callers’ privacy? A possible weakness that could be exploited by ILEC.
Need some clarification of this technology.
K Chang
1:11 PM PT
So, what’s so unique about this benefit? Seems like the restriction of the device far outweighs the savings.
I can get unlimited calling in the US a few ways already:
Sign up for Gizmo Project (I’m biased on this one) and have your contacts add their numbers to their profile and you can call them unlimited for free.
Pay Skype $2.50/month
Just use my cellphone or upgrade the plan $10-$15 per month to cover the mins I use on my home phone.
Or I can buy a $400 device and mentally amoritize the cost of $400 over years and years of use to justify the price by which time I’ll probably get phone service for free anyway through some cable or telco bundle.
I just don’t get it.
1:13 PM PT
Count me in for the free box. I would love to try it. - Jeff
1:17 PM PT
“Thank you for registering with ooma. A confirmation email is on its way to you and your ooma equipment will be shipped shortly.”
sweet! thanks gigaom
1:21 PM PT
“Secondly regulations will never allow free ride on public landline ifrastructure.”
But no one is making money or charging for the use of your POTS line plus there is no way to tell “what” is making the call.
1:41 PM PT
Sincerely, i really dont see anything so novel about this idea. Free unlimited calls to US numbers are out there allready from many voip providers and quality are good too. The idea of using my landline to terminate another person’s call does not sound too good from the security point of few and also traffic might get so high that my provider start asking questions (fair use policy). Also buying ooma box for $399 dollars is outrageous, this is more than a year subscription for unlimited calls to US and Canada from other providers. I think they still have a lot of work to do.
2:02 PM PT
I am with the skeptics, the termination using a remote device and the unlimited local calling plan, seems to be illegal to say the least. If this understanding is correct, the moment it gets past the noise level, expect the telcos to fight back. I would not spend $$$ to get such a box. It is much simpler to save money on long distance by buying a calling card service like wqn.com or others.
Ajay
2:44 PM PT
What about inbound traffic on my PSTN line? If the line is being “borrowed” by OOOMA I can’t get inbound calls. And if I have call waiting, what will the two parties using my line think is happening? Could one or the other flash hook and steal an inbound call?
3:10 PM PT
Interesting. I think there’s real promise in VoIP, but it’s a long ways away and it’s true that the carriers will be a problem.
As far as rolling it around the world, google “VoIP blocking”. Lots of countries have blocked VoIP - it’s happened here in the U.S. There was a software at the last VON show I attended that blocked VoIP for carriers.
3:48 PM PT
Voice over IP to Voice over IP is free. Voice over IP to voice over PSTN is not and never will be free because of the FCC.
3:55 PM PT
I too would like to get in on the fun. If somebody has an extra chip, could you please pass it along to chit at butch dot net?
Thanks!
4:37 PM PT
Any plug quoting Walter Moss-face is suspect.
4:47 PM PT
IS this any different what Sipura (currently part of cisco linksys) did with SPA3000 ?
PS: SPA3102 includes a router and ATA. I have been a happy camper with FWD + SPA3000 + gizmo combination. I paid just 75$ for device and gizmo account (pay as you go).
6:27 PM PT
Call me old fashioned and crazy, but I like the idea of having a phone that doesn’t go dark when the power goes out and doesn’t require that I boot up in order to pick a phone number (”You pick a number of your choice on the website.”). If I’m going to have to turn the ‘puter on and get on the web, I might as well go to jajah and call internationally for nothing.
6:42 PM PT
@ anorton, true that. Great point.
6:50 PM PT
Though we are looking at the positive side Ooma, there are certain barriers which they have to overcome not only free services do the magic , when it comes to internet an novice user expects some thing for free and boundless.
And if they expand their market like Vonage it really turns out to be a excellent offer where no man can resist!
7:11 PM PT
I’m interested in participating if anyone has tokens left: aplcmd (at) mac.com. Thank you. Cheers.
7:17 PM PT
I’ve had exceptional luck with Skype, I guess. I think its better and more reliable than my old Verizon/GTE landline was.
I mostly use a cell, so I don’t use incoming, but Skype’s invaluable for making calls I know will take a long time or where I need to record them, etc. Or on those happily rare occasions when I come close to the end of my normally way overgenerous 1000 minutes on my cell.
8:46 PM PT
@Dave Wombat: There is no concern about call waiting in the following sense. The party on the PSTN side can not act on the call waiting signal because the flash signal will go the C5 switch at that end and not the one connected to the donor Ooma. The Ooma customer who originated the call can generate the switchhook signal which will be ignored by the originating Ooma because it did not generate the call waiting signal. So the donor’s C5 switch will keep generating the call waiting signal. The donor Ooma can store the caller id information and present it at a later time. But voice mail can not be invoked.
9:41 PM PT
For international calls, nothing comes close to tel3advantage.com-simple pricing structure, superior call quality and far less expensive than skype out for international calls, and you are not tied to the computer.
9:45 PM PT
It sounds like a good idea. Have you considered the legal challenges from the existing telephone companies?
H.A.H.
9:57 PM PT
A buck-’n-a-dime a day for a year and you’re done for life.
Point me to it.
I use VIOP ‘n Skype on annual fee basis.
I’m surprised it’s taken this long for someone to do this.
10:10 PM PT
Okay, question.. What about caller ID? Someone in New York is calling to harass his ex girlfriend and leaves a threatening message on her machine. When she calls the police and they investigate they match my phone number up with the time the message was left since my Ooma box was where the call entered the PSTN.
Extreme example, but how about hundreds of strangers in my town wondering who this guy is on their caller ID?
10:36 PM PT
When you calculate the yearly cost for unlimited service in the US, it is easy to see the cost of the unit would pay for itself in months.
10:41 PM PT
Hi,
I would love to try this box if anyone has a free coupon to give out. I have a landline as required. Please email me at jen440@gmail.com
Thanks!
Jennifer
10:48 PM PT
If I call a friend over someone else’s POTS line, whose callerid will he/she see - mine or the POTS line owner’s?
10:52 PM PT
If I call a friend over someone else’s POTS line, whose callerid will he/she see - mine or the POTS line owner’s?
3:34 AM PT
I would love to be beta here in North Carolina’s Research Triangle Park… If it does what is says I’ll sell it!!!! Please let me be a beta tester…
Len
4:44 AM PT
Hey guys.
I would love to try out ooma (if i still can).
6:10 AM PT
They should outsource the development and manufacture to bring the cost down. Current pricing is too high.
Rama
6:16 AM PT
If you can beat what I currently paying $478 per year for 2 services ie unlimited local and nationwide wide long distance including High speed internet on a dedicated secured network with the phone company….pls call me.
7:07 AM PT
Would like to try the free ooma
8:37 AM PT
If anyone has any tokens and is feeling extra generous today I would love to try this out. Sounds like a fantastic idea, I’m just a little fuzzy about some of the details of how it works.
–MrAnt–
9:18 AM PT
I think Ooma will not work, especially in the USA where people are so afraid of terrorists. Would you borrow your phone to Al Qaeda for their next announcement? No? But you might be doing it with Ooma, without even notice. Out of the same reason Jeff Pulver’s “fwdOUT™ Phone Sharing Network” (former Bellster) never made it big: People cannot control who is talking under their number. When someone uses Ooma or fwdOUT, his call will appear on someone else’s phone bill or call record. This poor person would then have to prove that it was an unknown criminal who made the latest phone call. Quite difficult.
9:18 AM PT
Why Ooma is a security risk
I think Ooma will not work, especially in the USA where people are so afraid of terrorists. Would you borrow your phone to Al Qaeda for their next announcement? No? But you might be doing it with Ooma, without even notice. Out of the same reason Jeff Pulver’s “fwdOUT™ Phone Sharing Network” (former Bellster) never made it big: People cannot control who is talking under their number. When someone uses Ooma or fwdOUT, his call will appear on someone else’s phone bill or call record. This poor person would then have to prove that it was an unknown criminal who made the latest phone call. Quite difficult.
2:06 PM PT
Anyone that signed up that got 3 chips to pass along can you email me one? I would love to try this service out.
Thanks,
andrewscott71@hotmail.com
5:02 PM PT
I’m incredibly late to the party, but if anyone has any tokens left floating around in a haze of doubt, I’m willing to take the plunge.
Thanks in advance.
7:18 PM PT
Hello people,
I would like to try out the service if there any free tokens to give out. I have a fixed IP and land line service currently. My email is : vivek_mishra@hotmail.com
Thanks.