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Ooma is launching a new service which promises its customers an unprecedented offer of service for life

Every month, pay the mortgage, pay the car payment, pay the utilities, pay the phone bill -- right?  Not if you are an Ooma customer. 

Ooma, previously featured at DailyTech, is gaining ground by taking a unique approach in looking to VoIP service to the masses.   Users better start eating right and exercising daily, as Ooma is offering a hub for $399 dollars, which allows the user to make a lifetime worth of phone calls. 

This setup supplants typically high service prices with a high hardware price, a reflection on the drastically dropping costs of data transfer.

According to reviews, the service comes with nice perks including a second line built in (which allows for two simultaneous calls) and advanced voice mail features.

One downside is that you need to purchase separate scout units to connect extra phones in your house.  The $399 package comes with a single scout unit, which connects to the hub and can be connected to two phones.  Each additional scout can connect to two phones.

The hub can accept broadband cable or LAN connections and requires a power plug connection.  Phones can directly plug into the hub.  The phones can also be plugged into the scout, which the home telephone line plugs into.  The scout requires its own power connection as well.

A household might enjoy the two line capabilities of the Ooma hub.  While one resident was on the phone on a work call, the other resident could be checking movie times or calling relatives, freeing the household from single line woes.

The voicemail includes call screening features and allows you to listen to your messages remotely from your Ooma account.

One feature which users may want to reconfigure is the default caller id.  It is set to anonymous by default.  While some users may enjoy this cloak of secrecy, many will find that their calls are rejected by people with caller ID who do not answer anonymous calls for fear of solicitation.  The caller ID is easily configurable, though, both on the phone and online.

One more possible downside of the service is that international calls are not free.  You have to add money to your Ooma account to make international calls.

Ooma devices connect to each other on a peer to peer network, much like popular file-sharing programs.  Each phone connected strengthens the network and expands its potential.

Overall initial users and testers have been very pleased with Ooma's VOIP service.  While it has some minor downsides, the picture is overwhelmingly positive with the setup's full features and easy use.  Soon many Americans may be leaving traditional carriers like AT&T and Verizon in the dust, as they jump to VOIP and free phone calls for life.



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So once they have $400.00 from everyone...
By iFX on 10/15/2007 1:22:34 PM , Rating: 5
What happenes when they go bust in a year or two?




RE: So once they have $400.00 from everyone...
By JasonMick (blog) on 10/15/2007 1:26:35 PM , Rating: 2
Well, even if they don't it seems like within most peoples lifetime, the current internet technology would go defunct, so unless they offer free upgrades, its not really "for life".

Still, I was pretty enthusiastic about it, because as opposed to overpriced carriers, its a pretty reasonable setup. With calling plans, you would almost certainly pay about $400 a year ($33 a month), so even if you just got two years service, you would get snazzy technology, and a slight savings.


RE: So once they have $400.00 from everyone...
By othercents on 10/15/2007 4:56:05 PM , Rating: 2
I pay $60 a year right now with skype and thats for inbound calls, outbound calls, long-distance in US and Canada. The only thing I don't have is unlimited international calling.

Other


By GlassHouse69 on 10/15/2007 7:44:45 PM , Rating: 2
since you bought last, it has gone up 50%

it will until it is established


RE: So once they have $400.00 from everyone...
By rudy on 10/15/2007 1:27:43 PM , Rating: 3
It could also be they just need some cash to make large investments and decided this is the way to go rather then trying to sell stock or take out a loan.


RE: So once they have $400.00 from everyone...
By AnnihilatorX on 10/15/2007 5:14:09 PM , Rating: 2
If the technology is peer-to-peer in theory there should not be any technical reasons why the network would not still operate if the company go busted.


RE: So once they have $400.00 from everyone...
By vorgusa on 10/15/2007 10:07:19 PM , Rating: 2
I actually asked that earlier today... they said it would work fine if the company went away.. even voicemail aparently.. How would they organize everything though??? how would your machine know where a machine for a different area code would be without a centralized database


By Obadiah on 10/17/2007 7:10:51 PM , Rating: 2
I don't know a thing about Ooma, but what you ask is possible with a DHT - Distributed Hash Table. As long as you have somewhere to "bootstrap" from you are golden.

http://en.wikipedia.org/wiki/Distributed_hash_tabl...


put the money in the bank and use Skype
By Kuroyama on 10/15/2007 4:50:59 PM , Rating: 2
If I put that $400 in a money market account I can make 5% interest, or $20 a year. Skype has unlimited service for $25 a year, plus in the unlikely event they go bust I'm only out that $25.




RE: put the money in the bank and use Skype
By zander55 on 10/15/2007 6:01:36 PM , Rating: 1
can you please give me a link to this so called money market that guarantees 5% interest?


By jak3676 on 10/15/2007 7:59:02 PM , Rating: 2
I'll concede your point that there are no guarentees, but 5% per year is pretty low rate of return for an investment nowadays. You may not make that on a money market account, but just about any bond fund will make that easy and be almost as risk free.

Of course I still think you're better off with a generic S&P 500 index fund (average about 11% a year).


By Kuroyama on 10/15/2007 11:02:35 PM , Rating: 2
Here's a few random ones at over 5%:

http://bankrate.com/brm/rate/mmmf_highratehome.asp...

Or if you want a "big name" then there's the Citibank Ultimate Money Account:

https://web.da-us.citibank.com/cgi-bin/citifi/scri...

Regarding the S&P comment; I figured using a MMA would be less controversial, but sure you might be better off in an index fund. In any case, the point is that a "pay a lot one time" plan is not necessarily as good a deal as it sounds.


VOIP
By Oregonian2 on 10/15/2007 2:17:06 PM , Rating: 2
Note that ALL VOIP connections are peer-to-peer when talking to one another, that's also why ones like Skype can be free when you talk to another VOIP "customer". All that Skype (or the others) do is set the initial connections up (although Skype doesn't use standard protocols like SIP). When calling VOIP to regular landline then there needs to be a transfer point where the POTS TDM network is interworked with the VOIP caller, and that costs both money and latency. Latency is the killer for voice calls which is why connections need to be as direct end-to-end as possible (and why P2P going end to end can work). Latency is almost irrelevant for data transfer (web browsing, etc).




RE: VOIP
By afkrotch on 10/15/2007 6:30:23 PM , Rating: 2
Wrong. VOIP can also be point-to-point.


RE: VOIP
By Oregonian2 on 10/15/2007 8:32:05 PM , Rating: 2
I'm not sure what you mean. What I said is that they are point to point (where each point is a "peer" of each other). The voice channel goes from one person "directly" to the other person in the conversation. That is what peer to peer means, and AFAIK is what point to point means as well. The "service" just sets up the communications between the two (SIP signaling, etc), but doesn't usually participate during the call unless the call is going through a gateway to the TDM network (only one end of a call is a VoIP phone).

What do you mean by point to point that's different from my discussion?


One question.....
By marvdmartian on 10/15/2007 2:40:04 PM , Rating: 2
their lifetime, or mine ???




RE: One question.....
By EntreHoras on 10/15/2007 2:58:39 PM , Rating: 4
the lowest


Cheaper alternative
By ninjit on 10/15/2007 3:36:27 PM , Rating: 2
http://www.magicjack.com/site/index.html

Not standalone, (it's a USB stick that bridges your phone to the PC), but the service only costs $20/year for unlimited US calling (you also get an incoming number)

So far the reviews have been pretty favorable, and the biggest plus (for me) is that they actively encourage it's use on the go and abroad. I intend to get a couple for relatives abroad, so that they can call me for free/cheap.

For the same $400 you'd pay for ooma, you'd get 20 years of service from Magicjack, with no commitment - if they go under next year, you're only out the portion of that annual $20 you haven't used yet.





RE: Cheaper alternative
By afkrotch on 10/15/2007 6:49:33 PM , Rating: 2
You're also stuck with having to keep a computer on for 24/7, 365 days a year. Just incase someone calls. How much you losing out for electrical bills, cause you know that VOIP router is going to use a lot less power. Also supports 2 phones.

These products are pretty retarded to me, if both parties have one. Why? Cause if you both have one, that means both of you have a computer that's on. Just use an instant messenger and some wireless headsets.


RE: Cheaper alternative
By ninjit on 10/16/2007 1:22:26 AM , Rating: 2
quote:
These products are pretty retarded to me, if both parties have one. Why? Cause if you both have one, that means both of you have a computer that's on. Just use an instant messenger and some wireless headsets.


Uh, NONE of these services require both parties to have the product - that's the whole point: skypeout, Vonage, Ooma, Gizmo, etc. etc. they all let you call regular phones through the net for (hopefully) a reduced cost.

The magicjack service provides a real number that you can pick from a variety of area codes, and gives you unlimited calling to the US and Canada - from anywhere you have a net connection.

Skype unlimited is OK for $29.95/year, but they verify that your IP address is US-based

And I already said that it was not a standalone option, it's a USB stick - but both parties don't need to have it, just like skypeout or any other similar service.

Yes, if you intend to use it as your sole phone you would have to keep a PC on all the time, but many many people these days do have at least one computer at home that is turned on persistently.


sunrocket anyone?
By dr4gon on 10/15/2007 1:47:34 PM , Rating: 1
lol ..... anyone remember what happened to sunrocket, the 2nd largest VOIP company (after vonage) left many people hanging after they had purchased only 2 years (myself included) ... for $199.

Then they formed a separate company and urged people to move but pay monthly to continue their dwindling service.




RE: sunrocket anyone?
By OrSin on 10/15/2007 1:51:44 PM , Rating: 2
Where you ge they formed a second company? They are out of business and the owns ahs no stack in any other company. They are being sued now by so many people I doubt seriously they have anything left.


RE: sunrocket anyone?
By dr4gon on 10/15/2007 4:55:22 PM , Rating: 2
they moved to telebrand (aka as many like to call teleban)

The new site was up and running after sunrocket tanked. All you had to do to "continue service" was to enter your phone number and all your information (and phone number) was ported instantly meaning they had all the sunrocket data.

They are now charging like $12/month I believe? They're just a bunch of scammers.


Better alternative - standalone Skype phone
By lennylim on 10/15/2007 1:50:50 PM , Rating: 3
I bought a standalone Skype phone (Netgear SPH200D) about 9 months ago. It's a standalone (no PC required to operate) and plugs into standard phone line and Ethernet. I can use it to place / answer calls to / from landline and Skype.

The phone doesn't look as cool as this one, but even if Skype croaks, I'll still have a functional DECT cordless phone. Did I mention that the firmware is open source?




By Screwballl on 10/15/2007 2:28:13 PM , Rating: 2
I got the same thing, Linksys CIT200... I also purchased the one year for $39.00 SkypeOut rate they had so now my landline phone is locals calls only for $20 per month, wifes and my prepaid cell phones cost us maybe $50-60 per year for both so we have fairly cheap phone service all around. That and we do not make or receive many calls.


Hmm
By Murst on 10/15/2007 2:39:54 PM , Rating: 2
Stuff like this is always interesting.

On the one hand, you could just be throwing money away. On the other, if they turn out like TiVO, you could save a bunch of money.

I'm guessing VoIP will only get cheaper and cheaper though over the next few years. I'd be surprised if plans cost more than 15$ per month in, say, 24 months.




RE: Hmm
By agent2099 on 10/16/2007 12:52:44 AM , Rating: 2
Correct me if I'm wrong but didn't the original lifetime TIVO subscribers get screwed because of a change in technology?


No thanks
By Polynikes on 10/15/2007 2:02:16 PM , Rating: 2
Signing up (and paying a pretty penny for) lifetime service for something using (relatively) new technology sounds like shooting yourself in the foot financially to me.

If it scaled and you got free upgrades, it might be a good deal, but then you have to worry about the company going bust.

It would be nice to see more established telcos offer something like this. Perhaps longer contracts at a reduced price, with guaranteed upgrades as they become available? I'd drop a lot of money for a cable internet subscription for 5 years for cheaper, provided I get speed upgrades as they're available, and there's an option to get a prorated refund if you have to cancel the contract due to having to move or something like that.

But I'm just dreaming here. No telco would ever do that.




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