DailyTech - Ooma Hopes to Shake up Telecom Industry

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Michael Hoffman (Blog) - July 23, 2007 6:49 PM

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23 comment(s) - last by Sierra2007.. on Jul 24 at 11:27 PM

Ooma will allow consumers to have one more VoIP option

Startup company Ooma hopes to further change the telecommunications industry by offering a $399 box that is a hub for VoIP and landline calling - allowing users to have free long distance domestic calls.

Depending on whom a user is calling, calls made through Ooma can go over the Internet only, public phone system only or utilize both services. For example, when Ooma customers call one another, the call will go from one hub to the other hub via the Internet.

While currently under testing to a small number of beta testers, Ooma will be available to general market consumers sometime this fall.

The following features are included with the $399 package:

Instant Second Line™ - gives users access to a second line in their home, with no installation or new phones
Broadband Answering Machine™ - combines the power of voicemail with the convenience of the Internet and ease-of-use of a traditional answering machine.
Ooma Dial Tone™ - delivers unique tonality through an audio interface, creating a new dial tone
Ooma Lounge - provides consumers with the ability to manage their voice mail and call settings online

The first product is targeted solely for the residential market, though expansion to other markets can be expected later down the road.

During an interview with the New York Times, Andrew Frame, CEO of Ooma, answered questions regarding the service.

"Unlike other Voice-over-IP providers, Ooma encrypts all voice conversations as they traverse the Internet. Ooma has proprietary technology to prevent and detect tapping of the phone line," Frame said when asked about privacy issues.

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Ashton Kutcher???

By Parhel on 7/23/2007 10:43:42 PM , Rating: 3

Their website lists Ashton Kutcher as the Creative Director.

http://www.ooma.com/management_team.php

I don't know if I can take them seriously after reading that. That, and the name sounds like a 1950's Japanese monster movie. "Ooma vs. Mothra."

RE: Ashton Kutcher???

By ksherman on 7/24/2007 1:14:12 AM , Rating: 3

haha, just saw that. Kinda strange...

So what does this (relatively expensive) box give me? I am kinda confused as to how/why this is going to take anything by storm...

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RE: Ashton Kutcher???

By ninjit on 7/24/2007 3:27:49 AM , Rating: 5

quote:
Dude, where's my phone?!?

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RE: Ashton Kutcher???

By Jedi2155 on 7/24/2007 3:59:49 AM , Rating: 2

I was just reading about him recently...apparently he's a very smart guy that just has just been typecasted as a comic character.

He studied Biochem. Engineering before going into acting.

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RE: Ashton Kutcher???

By dice1111 on 7/24/2007 9:39:55 AM , Rating: 2

Unfortunatly having a show like Punked kind of discredit's him as well. Could this be a huge investment to set someone up for the ultimate prank? I'll let "you" invest to find out. ;)

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RE: Ashton Kutcher???

By glitchc on 7/24/2007 12:42:04 PM , Rating: 2

Regardless of the (tasteless) content, Punk'd is a smart business decision. People enjoy watching their stars getting duped, which boosts the rating of the show, hence making money for Kutcher. I fail to see how a successful show makes him a bad businessman. If anything, credit must be given to his business acumen for finding and exploiting an untapped market. I mean that's what being successful is about, wouldn't you agree?

Since we're talking about Punk'd, how about taking a look at Jackass? Now there's some ridiculously moronic content, and yet people pay to watch that too. A few decades ago, this was called slapstick comedy, and it was popular then too (Three Stooges anyone?) although admittedly it was not as moronic/tasteless.

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$399?

By stevenplatt on 7/23/2007 7:24:44 PM , Rating: 3

what exactly is this "box". I actually think $399 is expensive. if you are a skype-out user. It would take 8 years before your running expense reaches $399. This sounds like a standard voice gateway and that Ooma is simply footing the bill for the life of your ownership. Speaking of which, the "box" will propably break before the 8 year mark.

RE: $399?

By Gul Westfale on 7/23/2007 7:44:15 PM , Rating: 2

i use a pay-to-talk cellphone for local calls, and i use skype to call friends in germany (PC to PC, free of charge). paying $399 for the convience of... well what actually? there is nothing here that would justify 400 bucks, or 200 for that matter.

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RE: $399?

By Oregonian2 on 7/23/2007 9:05:03 PM , Rating: 2

And you get bi-directional video of reasonable quality in that free international call using Skype too. :-)

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RE: $399?

By Screwballl on 7/24/2007 11:45:07 AM , Rating: 2

I have fallen in love with Skype as well... in the US, you can get 1 full year of outgoing phone calls to any US/CAN numbers for $30US (SkypeOut). I use my cell or landline for incoming and SkypeOut for outgoing long distance or a free second line if the wife is on one of her clucking sessions on the phone.

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Nicely done

By HaZaRd2K6 on 7/23/2007 7:02:46 PM , Rating: 3

quote:
Ooma has proprietary technology to prevent and detect tapping of the phone line...

I like the sound of that. What with all the new snooping laws (http://www.dailytech.com/Court+Ruling+Allows+Gover... Even though I don't live in the States, I know people who will definitely be happy about this.

The more important question:

By RyanM on 7/24/2007 1:00:33 AM , Rating: 3

The calls are encrypted, but who's got key escrow? What good is the encryption when you're gonna pull an AT&T and just give the feds tap rights?

Netgear SPH200D - $150ish?

By lennylim on 7/24/2007 4:02:11 AM , Rating: 3

For $150 or so, less with the occasional rebate, my SPH200D connects to both a land line and my broadband. I can call other Skype users, use SkypeOut to call a phone, or use my land line to call a phone. I can be called by regular phone (without SkypeIn) or Skype. It is completely standalone, does not require a PC at all.

It's DECT, does not interfere with my 802.11g network, and I can get additional handsets. The firmware is open source, though I have not tried to do anything with it.

It is not perfect. It doesn't seem to have a local phone book, and there is no answering machine. But there is a huge user base for free calls, and AFAIK Skype calls over IP are encrypted.

Star Wars

By mendocinosummit on 7/24/2007 1:48:03 AM , Rating: 2

In Star Wars Episode III were Padme is giving birth isn't the robot saying, "ooma, ooma, ooma."

A little confused...

By ninjit on 7/24/2007 3:38:05 AM , Rating: 2

Tried looking up more info on this, and it seems you are required to already have a landline phone connection to use this...
They are very scarce on details, but it almost sounds like fon for phonelines:
In order to get free calls to anywhere, you have to make your phoneline available to everyone (i.e. they will route any user calls to your area through your phoneline via the "hub" hardware you bought).

I maybe mistaken on this, but that's my impressions of it - which doesnt appeal to me at all.

If that's not the case, and you are simply paying $400 for a lifetime of service (as one commenter above already surmized) - that again doesn't really appeal to me unless I make enough long distance calls to justify the cost within 1 year - otherwise there's no guarantee the company will be around to provide your "lifetime" of service next year.

Hackers!

By Takeoff250 on 7/24/2007 9:21:30 AM , Rating: 2

Am I missing something?
If Ooma routes calls through the phone lines of other users and encrypts all voice conversations as they traverse the Internet, how will they encrypt over the POTS line of a subscriber?

Research

By Sierra2007 on 7/24/2007 11:27:56 PM , Rating: 2

I have done my research on Ooma. It seems 1 negative comment leads to more negative. First off, I agree that Ashton Kutcher is an incredible business man. Ooma has been in the making since 2003, they have a huge engineering team dedicated to trying to do what other VOIP companies could not. The device is made in-house (unlike phonegnome) & you do NOT have to have a landline nor a computer. Or another monthly bill for that matter.

Just think-if people weren't so busy bashing the company that has set out to change the telecomm industry, they would stay around and everyone would save. Who cares if it takes 2 years or 10 years---You're saving!

As for the box breaking, I assume the CEO of Ooma is a smart guy and there is some sort of warauntee for the box.

Vonage Is Dead

By jdun on 7/23/07, Rating: -1

RE: Vonage Is Dead

By PAPutzback on 7/23/2007 10:27:22 PM , Rating: 1

You're as dumb as the come. Ooma beta tester maybe or just plain stupid.

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RE: Vonage Is Dead

By jdun on 7/24/07, Rating: 0

RE: Vonage Is Dead

By Takeoff250 on 7/24/2007 9:40:07 AM , Rating: 2

Ooma will be a total failure and I'm sure they know it. They're trying to create a big hype and hope someone will buy them.

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RE: Vonage Is Dead

By lumbergeek on 7/24/2007 4:11:12 PM , Rating: 2

The idea behine VoIP was supposed to be that you didn't need the overly expensive landline anymore. What's the point of having a box where you need both a VoIP service and a landline?

Unless someone can point out the advantages to me, I'm gonna file this one as a "Whoop-de-do".

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RE: Vonage Is Dead

By Parhel on 7/24/2007 4:46:01 PM , Rating: 2

My understanding is that you need a landline, but you don't need a monthly VoIP service. The one-time fee for the box takes the place of that.

But, I also don't see the purpose. If international calls were also free, it might be worth considering.

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