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

Combined Strength: UC Solutions for Easy Selling | Webinar May 2025

https://youtu.be/hDzakM8YGGI Knowing about UC Solutions and how to sell them can lead to added success…

1 month ago

Did You Know: Emergency Communication with VoIP Is Revolutionizing Public Safety?

Did you know the first 9-1-1 call dates back to 1968 in Alabama? AT&T introduced…

1 month ago

Watch Now: 2025 May VoIP News Update

https://youtu.be/ibAll_fVU4g?si=9O6QVec9cL6YjtDE Your May VoIP News Update is here! In this month's episode, we cover a…

1 month ago

Fanvil V62W Wi-Fi IP Phone Product Feature Video and How to Register with Sangoma PBXact

https://youtu.be/KrdtAr7TDHI?si=Te6zARkJkDZKoW9R If you haven't seen the Fanvil V62W Wi-Fi IP Phone, you may want to…

1 month ago

Did You Know: You Can Custom Design Your Ideal Meeting Space With New Tools?

You want to optimize your meeting space or conference room to ensure every remote or…

2 months ago

How to Create and Submit an RMA 2025

https://youtu.be/58HX8VIljrY?si=v4-BBtOhIiDujgch In the fast-paced world of Telecommunications, things can happen, and sometimes those things require…

2 months ago