Geek and Cheap

For a year or so I have been eyeing another VOIP alternative called Ooma.  Over the years I have tried other VOIP providers such as Vonage and Magicjack but was intrigued by the one-time fee from Ooma.  I am a huge Costco fan and when I saw it in the store for $179.99 I decided to pull the trigger.  I figured that with Costco’s impeccable return policy, I could take it back if I disliked it or had buyer’s remorse.I still use Magicjack from time to time, but I have been searching for something that is a more viable VOIP alternative and does not require a computer.

In case you are unaware, the Ooma device looks like an old fashioned answering machine.  It connects directly to your router and you then connect ANY phone to the Ooma device.  It took me roughly 20 minutes or so to get the device up and running.  You use a web-based utility to do most of the setup which was very user-friendly.  I was able to pick a phone number in my local area and was calling out in no time.

Some Positives of the Ooma system:

• No monthly fees!
• Easy installation
• Ability to port your existing number for a one time fee of $39.99
• Works with your existing phones.
• Online playback of voicemail messages.
• Unlimited calling to any US Number.

Some Negatives of the Ooma system:

• You run the risk of the company going bust
• Integration with alarm systems is untested
• You lose phone service if you lose your internet connection

When I went back into Costco recently they were out of the Ooma devices.   There are two different versions of the Ooma system.  I bought the Ooma hub which is the older version of the device.  The newer device is the Ooma Telo which allows you to use Ooma’s proprietary handsets that allow you to access voicemail and other features.  I chose the Ooma hub because I was not interested in the Ooma handsets.

Costco apparently no longer sells the Hub online and only is selling the Telo for $199.99, which still seems like a good price.  Amazon has the Hub for $204.95 and the Telo for $222.99.

Overall, I am pleased with the device and am hoping that Ooma is here for the long haul.   I think the company has an interesting business model, and I just hope that others are willing to try something new and unproven.

Filed under: Saving Money, Technology