Ooma to offer free voip

Filed in archive Business News on July 20, 2007

In the US, a company called Ooma offers a VOIP solution with free domestic calls for the rest of your life. You can obtain this by buying their phone (called the Hub, 399 USD), which connects to your broadband connection as well as your landline. The company claims that this is unique, even if your broadband connection drops, you are still reachable on your own landline number and you can still make calls.

This is in no way unique. I have been using a voip provider who charges no subscription fees whatsoever, and offer a certain amount of free calls to a big list of destinations (a lot of international destinations !!) with a FUP (fair use policy). The provider works with SIP, so any SIP capable device can be used to make calls. Although it is possible to get a number with another company that connects to this account, I configured my Siemens C450s, a SIP capable phone that also connects to my landline. I have two handsets, so we can make two phonecalls at the same time.

The real catch with Ooma is the same as with Skype : your Ooma Hub (the device you have to buy in order to use the "free" service) is part of Ooma's grid network, which makes it an active member of the peer to peer network powering the service. You are providing bandwith and use of your network. I therefore cannot see why this company has the nerve to call it's service free.