Ooma public launch imminent…

Michael Arrington over at TechCrunch reports that much hyped silicon valley VoIP startup Ooma is currently taking customer orders for their $399 “hub”, which enables free VoIP calling via their proprietary peer-to-peer mechanism.

For complete details on Ooma’s service and features, peep their website here. Their strategy seems to be to create a peer network of Ooma hubs, deployed with residential users across north america. Ooma beta users and first adopters are encouraged to maintain an analog POTS line from their traditional provider (AT&T, Verizon, etc), and go ahead and plug said analog line right into their Ooma device.

Ooma is banking on leveraging these PSTN connections to terminate user phone calls from their peer-to-peer IP network onto the PSTN. In the meantime, until their network is “seeded” with PSTN connected peer devices, they’ll have to terminate those users calls the old (new-old) fashioned way, by using a commercial VoIP termination provider.

I came across Walt Mossberg’s article on Ooma back in mid-July, and the title of his piece “Ooma Puts Out a Call to Ditch Landlines for Web-Based Service”, seems a bit ironic…. as Ooma will, in reality, rely upon those very same landlines for free call termination in order to sustain their business model and bring their CPE devices down to a realistic price for mass consumption.

However, their product packaging and mini-PR machine have taken some queues from Apple by creating a bit of mystique around the product. The $399 cost (reportedly jumping to $599 at the end of 2007) of the Ooma device will go a ways toward offsetting their termination costs until their network is fully built out with sufficient PSTN connected users that the majority of user calls can be terminated within their peer group.

That’s the gameplan at least. Finding consumers willing to pony up $399 up front in the wake of recent high profile industry flame-outs like SunRocket, may prove challenging.

TalkCrunch has a podcast interview with founders Andrew Frame and Ashton Kutcher (yes that Ashton Kutcher)

Garrett Smith

Garrett is the former VoIP Supply CMO.

Share
Published by
Garrett Smith

Recent Posts

Viking VoIP Emergency Phone E-1600-IP-EWP: Product Feature and How to Register with Sangoma PBXact

https://youtu.be/FE2kcF7KjgQ?si=inw4thEr2thxgGeL When it comes to security, you should never cut corners. Having something that you…

3 days ago

Watch Now: 2025 March VoIP News Update

https://www.youtube.com/watch?v=X2_HXAv73FI Your March VoIP News Update is out now! This month we showcase an awesome…

7 days ago

Did You Know:  New MS Teams-Certified Services, Products & Devices!

It is certainly no secret that leading platforms such as Microsoft Teams have grown in…

1 week ago

Snom M56 DECT Phone & M500 Base Station: Product Feature and How to Pair Devices

https://youtu.be/7_EIZKXqG3w?si=nvWqq8EAe58AJ6Dp Over the years, we have seen several advancements in DECT technology, and with that,…

2 weeks ago

How To: Prepare Your Business for Upcoming Tariffs in the VoIP Industry

With all of this talk about tariffs, we wanted to provide you with some information…

2 weeks ago

Fanvil i62 Outdoor Audio & Video Door Phone: How to SIP Register and Program RFID Card

https://youtu.be/y3X1PcrK6i8?si=qWPgzDNhhngcsk_a In today's world, security is one of the most important things to have for…

1 month ago