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Home » Budgeting, Lifehack & GTD

My Review of the Budget Slimming Ooma VOIP System

Submitted by G.E. Miller on Thursday, 2 April 200927 Comments

It’s been a month since I made the switch from Verizon Wireless and no land-line to using a combination of the Ooma VOIP and Tracphone’s Net10 cell phone service. Making this switch has effectively cut my monthly phone expenses in half, from $60 to $30 and has actually resulted in more flexibility and services. But how do these services measure up? In this post, I’ll first do a review of my experience with the Ooma. 

What is the Ooma?

It’s basically a VOIP hardware system with no monthly service fees. Essentially:

1. You buy the Ooma system.

2. You hook it up to a high-speed internet connection.

3. You plug it into your regular land-line phone and use it without paying any service fees.

The Cost of Ooma

Ooma started out at around $400, but has steadily dropped in price since. I purchased it for $199 from Amazon, which was about $50 cheaper than I saw it elsewhere. The basic service, which has no monthly fees, includes:

  • free calling to anywhere in the U.S.
  • call waiting
  • voicemail
  • caller ID
  • a new number (you can also port old numbers if you choose, but it costs $39.99)
  • voicemail can be heard online
  • no PC required
  • one year warranty

Ooma Premier

Additionally, you can purchase enhanced services. I haven’t done this and I’m really happy with the basic bundle, but should I need a second line (perhaps for a home business,) it seems to be a great deal. Ooma Premier costs $12.99/mo. or $99/year, which gets you:

  • A second phone line
  • Free phone number port (normally $39.99)
  • A number of higher end personal and business features, including: 3 way conferencing, send to voicemail, voicemail forwarding, privacy, and personalization features.

Installing the Ooma

When the Ooma first arrived, I was a little intimidated. There was a 50+ page (mostly text) instruction manual. When it comes down to it, there can be different set-ups based on how your phone and internet lines are wired. For most people, the set-up is going to be very easy:

1. Run a wire from your modem to your Ooma.

2. Run a phone wire from your Ooma to your landline phone.

3. Go online, choose a number, and activate your unit.

It’s really that simple.

How the Ooma Performs

I haven’t run into any problems with the service. All calls are crystal clear – as good or better than a land line. Inbound and outbound calls have always worked. The voicemail service is great. This is one of those rare times when you purchase something that you have high hopes for and it actually exceeds your expectations.

Final Thoughts

I think the Ooma is great for anyone in one of the following three situations:

1. Those who want any sort of VOIP/landline phone. You won’t be able to beat the price (it basically pays for itself in under a year).

2. Those looking to cut their cell phone bills by cutting their minutes.

3. Those starting a home business who may need the flexibility of multiple lines.

My only remaining hesitation is that Ooma is running a different type of business model that relies heavily on the hardware purchases. Let’s hope that they are around for a while and never decide to start charging for their service out of business need.

To the Readers:

  • Do you have Ooma? Let’s see your review!
  • What would your hesitations be to buying the Ooma?
  • Any questions on the Ooma?

Want Ooma Related & Other Free 20SomethingFinance Content Sent to You?

You may also find the following articles of interest:

How to Use Ooma and Net10 to Cut your Phone Bills in Half

Are you Ready for the Analog to Digital TV Conversion Switch?

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27 Comments »

  • Steve said:

    I don’t have an Ooma, but a friend of mine does, and it works great. Better than Vonage. I like having one primary cell phone, but if I ever decided to go back to a landline to cut my cell minutes, I’d probably make the jump.

  • Shaun said:

    I’ve always planned on going that route or just going exclusively with the cell phone. It’ll be interesting to watch the future of “main” phones. I know a ton of people (my sister and her fiance) who don’t even have a “main” phone anymore. If someone wants to contact them, then one would just call one of their cells.

  • Shaun said:

    Btw, did you ever get that new dog? I’ve been considering a dog for quite some time, though currently my housing arrangement wouldn’t be ideal. :)

  • G.E. Miller (author) said:

    @ Shaun – Yep, I did get a new dog. Posts to come soon. =)

  • Jeff said:

    Comments on ooma telo???

  • Robert said:

    I love Ooma. I have three homes, and have it in each location. Sound is great. and have eliminated three phone bills. Totally free calling all over U.S. Voice mail is great, and the calls to all locations are forwarded to my cell.. I have never missed any calls. Each unit paid for itself in 6 months. And no monthly bills like with vonage or cable VOIP providers.. This one is free after you buy the box, but with a ROI of 6 months, this is a no brainer..
    Buy one, and see… Love, Love, Love Ooma

  • Joe said:

    I was interested in the Ooma device to replace my land line. However, in my research I found something very troubling. Even though Ooma advertises “unlimited” calling in the US all over their website and in their advertising…. the fine print (under “terms and conditions”) clearly states that there is a 3000 minute per month limit! (about an hour and a half per day). If you go over that limit, they have the right to TERMINATE your service (yes that $200 device is now a paperweight) or charge you a fee per minute. This to me is clearly a case of false advertising. Even if the device is great, stating unlimited calling when there is clearly a 3000 minute limit is unacceptable.

    Also FYI, in this review you mention the use of Ooma for business purposes… this is STRICTLY prohibited in their terms of service!

  • Tony (ooma) said:

    Joe, the limit of 3,000 minutes is for outgoing calls. You may check the Terms of Service of another major traditional VoIP service provider where it also states a limit of number of minutes for “unlimited calling” (they also collect a monthly fee whereas ooma does not have any monthly charges for domestic calls). A major cable VoIP provider even mentions that “they reserve the right to limit or block any usage as deemed necessary to prevent harm to its network, fraud or abuse”, guess how much is considered as abuse? All service providers need to have legal terms to deal with actual abusers and to be clear ooma has never canceled a customer account for such reasons so far.

  • Pat said:

    All,

    I just picked up my Ooma yesterday. Installed easily and sounds great. I contacted customer support to ask about their premier service and was surprised that I was actually speaking to a rep in less than a minute. I had heard stories about bad support but also had seen many great comments at the various big box retailers. I’ve been with Vonage for over two years and they are raising their prices steadily. I was on the low plan at 25 bucks a month.

    An additional reason to buy this is because of the future features Ooma is planning to have. Since it runs a Linux OS, they are going to be adding spam engines, firewalls, and so forth. This device surely is not your typical VoIP. Some of the individuals that started the company came out of companies like Cisco, Lucent, Nortel, and so forth.

    The web interface is pretty good and getting better. I like the fact that I can have a text message sent to my phone when a VM comes in. The premier plan gives you more features plus you also get your phone porting included in the price should you desire to go that route.

    I plan on running it as long as I can. If the company folds after a year, I will have recouped my investment in about 10 months. If it doesn’t fold, I’m won’t be getting a monthly bill and I’ll be real happy.

    As far as the 3000 minute limit, I’m not to sure how many people will hit it unless you run a small business. With vonage, I was using 53 minutes a month since most of my calls go to my cell phone. The core reason I have the “landline” is because of my home security alarm, otherwise, it would be out the door. BTW, it works fine with most alarm systems.

    cheers.

  • Business Gas Prices said:

    Awesome review. Thanks for sharing.

  • Cheap Voip Service said:

    Great article. The husband and I dumped landlines for voip about 2 years ago and haven’t looked back since. Our friends are cell phone only but we only have prepaid so this works out. Thanks!

  • Deb said:

    Does anyone know if OOma can make 911 emergency calls?
    I initially had looked into Skype until I found out that Skype cannot do so….my elderly parents frequently visit and I need to be able to use 911…

    Thanks

  • Doug said:

    From the ooma faq

    8. Do you support 911 calls?

    Yes. ooma provides E911 service where supported. We will collect your address when you register your ooma device online, and send it to emergency response personnel when you dial 911. Since ooma works over your Internet connection, you will need to call from a mobile phone if your Internet connection is down. If you’re concerned about relying on your Internet for phone service, we’ve built the ooma system to work with a landline back-up. In this case, your 911 calls will always be routed over your landline.

  • Stan Perkins said:

    I’m confused about requirements for OOMA: isn’t it necessary
    to have DSL? If so, then a connection with a server is
    required, right? And so, OOMA cannot stand along, but must
    be hooked up to a service you DO pay for?

  • Jerry said:

    I live in the country where cellphone service is spotty. The OOMA system works great for me. While I am at home I forward my cell to OOMA and never miss a call. It can also ring both the cell and the OOMA.

  • Omar said:

    Hello,

    On 2006, I changed to Vonage and that was a great step, talking about billing, saving a alot. after paying about $60 to AT&T. the bill goes down to $33 average includes taxes and afew internac. calls. 10 min.

    7 months ago i canceled Vonage and I got Ooma at Frys Electronic, this is the best change i’ve ever made. The price $233 final price. and it has paid already by it self.

    so what i can let you know, that the service is great. I do not have any landline, The system Ooma works great whitout it.

    The only problem i have got is sending and receiving fax. I don’t know if is because a Multifunction Canon mx300. the machine looks fine but Ooma seems to have missing the compatibilities with analog signal or something like that.

    I will rate the next 3 services by my tech knoledge:

    #1 Vonage – In/Out calls clear (noise 15% sometimes), Fax-ok, Features alot, cust.serv-ok

    #2 Ooma – In/Out calls clear (noise 20% sometimes), Fax-No good, Features just afew 5 or 6 for free(more paid), cust.serv-ok

    #3 MagicJack In/Out calls clear (noise 20% sometimes), Fax-NO, Features less tahn Vonage/More than Ooma , cust.serv-No good. online only

    So i hope some info helpful for anyone..

    thanks…ULIZ

  • George said:

    I have 2 phone numbers at the house. Each one has multiple cordless units. Will ooma work for me? From what I’ve read, ooma offers a 2nd line with the premium service. Sounds more cost effective to purchase a 2nd ooma. Is this the way to go? thx

  • David said:

    In regards to Ooma fax capabilities, Omar needs to read the help section on the Ooma web site. Ooma does not claim that its service is 100% fax compatable, but if you follow their directions i.e. by using the prefix *99 in front of the phone number, it usually works.

  • SouthWind98 said:

    Governments and central banks have staunched the bleeding in their financial systems. ,

  • Tom said:

    I am still confused. I am looking to eliminate my home phone bill but it says that you have to hook up ooma to your home phone line. Do you still have to keep your home phone to use ooma?

  • G.E. Miller (author) said:

    @ George – It seems like using two Ooma’s would work if you had multiple modems or one modem with multiple connections to plug them in to.
    @ Tom – You don’t have to hook it up to a ‘phone line’, but you do need to plug a ‘phone’ into the system – it could be any old phone that you have.

  • George said:

    Thanks for the reply. Sounds like I can connect two oomas to a hub. I’ve heard there’s a cost associated with keeping the old phone numbers. Is that true? thanks again.

  • Tom said:

    I do not know what you mean by any old phone, I would hook up the phone that I would be using but can I cancell my phone service I have now before hooking up ooma?

  • G.E. Miller (author) said:

    @ George – If you want to port your old #, there is a one-time fee of $39. New numbers are free.

  • John M. said:

    If I install the Ooma, what happens to the handsets(3)which are plugged into the A.C wall receptacles,will they still work?.
    I presently have “Triple Play”(T.V.,internet & phone)from my cable company. I would like to dump the phone service & save a few bucks.
    Thank You
    P.S. I am a retired senior who does not make many phone calls, is the newer Ooma the way to go, or stick with the older model?. I live in an apartment.

  • Dick said:

    Tom, you are confused. OOMA replaces your current phone carrier (Verizon, etc.)but not your phone lines. You will need a high-speed Internet connection as you do with all VOIP services. If you have the connection, simply buy the OOMA unit and connect your phones that you are using now to the OOMA hub. It’s that simple.

  • Dick said:

    John, yes the handsets will still work. The main handset, which is now plugged into your current service, is simply plugged into the OOMA hub.

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