Ooma - Hardware Based Free VoIP Service

Ooma is a new company launched in 2005 that wants to revolutionize the VoIP by making the service free for a life time. In September 2007, they launch a package whereby you buy their hardware and use their service for free. Till that time, many users have been running the hardware and service on beta tests, and most were satisfied with what they got. The beta testers are called White Rabbits.

Ooma is bringing something that is likely to reshape the VoIP landscape. Time will tell how successful it will be.

To use the service, you only need to have an Internet connection. They will get you their hardware, which consists of a hub and an eventual scout. The hub connects to your Internet connection on one side and to your phone line on the other, thus allowing you to make and receive calls for free. If you want to use another line, which comes free, you have to get an Ooma Scout and connect it to the phone. To my taste, the hardware looks very nice. Both the hub and scout look like blocks of ice, reminding of Apple machines. Both are silver in color and have backlight.

The service uses P2P technology to place VoIP calls, in the same way as Skype does. This is indicative of quite good quality, provided your Internet connection's bandwidth is good.

The setting up is quite simple. You only have to plug the Internet connection to one side of the hub and your phone to another. If you want to get another line and connect another phone, you have to buy a scout, which is at $39 per piece.

For the phone number, Ooma does not actually give you one, which means you have to keep your landline number to be used with the service. In case there is a breakdown or a power cut somewhere, the system seamlessly switched back to your landline, and even your 911 will work.

The service costs nothing. You can make and receive VoIP calls for free (for the time being, you can make calls only within the US) anytime and for any length of time. If you make international calls with the Ooma service, it will not be free, since Ooma does not yet offer free international calls. All calls are free within the US.

You however have to buy some the hardware (the hub and scout) for $399. Quite expensive, isn't it?

You will be tempted to think how Ooma is different from services like Skype, which also offers free VoIP. Two main points differentiate Ooma from the others:

• It is hardware based, i.e. you don't need a computer to use the service, only the phone that is connected to the hub.
• It allows free calls not only to other Ooma users, but to any other fixed or mobile phone.

Most people find the hardware cost as a serious obstacle in the way to benefitting from the free service. While being attracted to the new market-reshuffling service, they prefer sticking to conventional services like Vonage and pay a small amount per month.

This thought goes further into apprehending an eventual going down of the company or service (be ensured by the way that there is absolutely no indication of such possibility, but rather of its contrary!). If this happens, subscribers will be left with pieces of useless and expensive hardware.

Some other issues also raise the obstacle's height, like what if the voice quality degrades with increasing number of users; or for how long will the service remain free.

A second thought makes some balance in the issue. Consider paying a company like Vonage service for two years at $24 per month. This would amount to nearly $600, excluding the other costs associated to the service like subscription cost, hardware cost etc. So if Ooma stands firm for at least two years, you win as a subscriber.

Speaking of this, Ooma as a company seems to be quite strong. They have been working on the project since 2005, and all indicates that there are good days ahead for it. But in this VoIP game, anyone can lose anytime. Some time back, SunRocket was very successful, until its closure surprised many.

Here are the pros and cons I could figure out:

Pros

• Free calls (within the US) to any user, not just Ooma users
• Allows 3-way conferencing
• Has an inbuilt answering machine for voicemail
• Has 911
• Nice-looking hardware
• Instant Second Line - this feature gives each subscriber a second line

Cons

• Expensive hardware to buy ($399)
• Free calls limited only to the US
• No number given upon subscription

The $399 price will apply to applicants signing in as from September 2007. If you want to use Ooma before September 2007, you have to do so as a White Rabbit (beta tester). You get the hardware for only one penny.