I just got my Ooma Telo unit.  It was quite easy to install.  The whole process took about 5 minutes online and then about another 20 minutes for the unit to download the latest code, etc.  My first impressions are positive.  It just works.  I’ve started the process of porting my phone number off Vonage.  According to the Ooma site, this can take 3-4 weeks.  I’ve disconnected my Vonage router and went to their site and forwarded my number to the temporary Ooma number.  So far the features I’ve played with rock.  I love the fact that if someone calls and has their caller id blocked or a re anonymous, they go to voicemail.  I also love the blacklist, I get a couple calls a week that are automated, they are now no longer going to bother us but get a one way ticket to visit the voicemail box.

I’ve been a Vonage customer since March 7th 2006 and I’ve got to say, it was one of the best moves I’ve made.  My initial outlay was ~$100.  The Linksys router cost $99.99 and had a $50.00 rebate.  I had to pay $29.99 to activate my account and $14.95 shipping.  When I first started, I was paying $27.97 per month.  Since then, it has slowing increased to about ~$33.oo per month.

I’ve had a few complaints, mostly the system has not really evolved.  I.E. my first complaint and still is true today is no outbound caller ID (Name).  When I call someone, they get my number but not my name.  The other big complaint is that the call waiting feature does not always work.  I.E. sometimes people get a busy signal and I have no clue that I missed a call.

I started looking at Ooma last spring/summer.  They were in beta for the Telo product so I wanted to wait and see how it rolled out.  I also wanted to wait for CES to see what else might be on the horizon.  I just purchased the Telo and I’m waiting for it to arrive.  Right now, Costco has the best deal.  They are selling the Telo for $229.99.  What’s so good is that they give you $100 for international calling and instead of a 60 day trial of Ooma Premier, it’s 6 months.  Now once you buy the Telo, it costs you around $12.oo per year.  The first year is included in the cost of the Telo.  This charge is called regulatory recovery and other costs.  What do you get for $12 per year?  A phone line with basic voicemail.

So how do they make money?  They are banking on most customers buying the Premier service for $9.99 per month.  This gives you a second line, voicemail notification via e-mail and SMS, voicemail forwarding via e-mail, the ability to transfer a call to voicemail right in the middle of the call, do not disturb, 3 way conference, blacklist, community blacklist, anonymous call block, call forwarding, multi-ring, custom ring patterns, and call screening.

For me, these are great features and I’m excited to have them.  Just having a second line for $9.99 is a deal.  Add the other features.  Just think, even if both lines are busy, the calls will ALWAYS go to voicemail.  No more busy signals

From a financial point, I’m banking on the company being in business for at least one year for me to break even.  I.E.

Vonage = $33 * 12 = $396.00

Ooma Year 1 = $246.98 (Telo cost + shipping + tax) + $59.94 (6 Months of Premier) = $306.92 (Savings $89.08)

Ooma Year 2+ = $12 + $119.88 = $131.88 (Savings $246.98)