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ooma 

*Est. $215

Reviewed June 2009
Ooma

Hardware VoIP with no monthly fee

pros
  • No monthly service fees
  • Good call quality
  • Free long distance in U.S.
cons
  • Steep hardware cost
  • Usage cap 3,000 minutes per month
  • Advanced features incur monthly fee
  • International calls not the cheapest

Ooma differs from other VoIP services in that it charges only for the initial hardware, which includes an adapter for one extension; there are no monthly fees for the basic service. Each additional extension requires an extra adapter (*Est. $70). Domestic calls are free, so unless you make mostly international calls or need lots of extensions, reviews say this is the most cost-effective VoIP solution. The free service includes basic features such as voicemail and caller ID, plus a virtual second line, so two people can make calls at the same time. Some fancier options, such as three-way calling and voicemail forwarding, require a Premier subscription (*Est. $13 per month). Most reviews praise the call quality, but technical support gets mixed reviews. If you make lots of international calls, consider Vonage (*Est. $25 per month), which offers free calls to several countries plus various unlimited plans to others.

We found the most detailed comparison reviews of Ooma at The New York Times and at SpotCoolStuff.com; both reviewers compare Ooma with three other popular VoIP services. Single-product reviews at Computerworld.com and EVDOInformation.com provide more detail. While we found the most user-written reviews at Amazon.com, the reviews and ratings at DSLReports.com are better consolidated, with useful comparisons to many more VoIP services. An article at PCWorld.com discusses hidden usage caps, and another useful article at Fierce VoIP examines Ooma's business model to evaluate the company's probable longevity -- a crucial factor since costs to the user are all up front.

Our Sources

1. The New York Times

This review compares Ooma with Vonage, Skype and MagicJack, concluding that Ooma and Vonage have the best call quality plus easy installation and use.

Review: Talk Is Cheap, If You Ask, Eric A. Taub, April 29, 2009

2. SpotCoolStuff.com

This detailed review of Ooma compares it with Vonage, MagicJack and Skype -- concluding that for U.S. users who make mostly domestic calls, Ooma is the best choice. Call quality rivals that of Vonage, and Ooma costs the least in the long run -- but international calls are cheaper with Vonage, and Vonage customer service is better.

Review: Is Ooma Worth Your Moola?, Editors of SpotCoolStuff.com, March 19, 2009

3. Computerworld.com

This detailed single-product review of Ooma concludes that it can save a lot of money unless you need a lot of extensions or extra options. Call quality is judged adequate but variable -- sometimes hollow, tinny or fuzzy.

Review: Review: Ooma Helps You Save on Your Phone Bills, Preston Gralla, Feb. 25, 2009

4. EVDOInformation.com

This review reports on tests of Ooma on a 3G wireless network (Sprint EVDO) as well as over a high-speed cable broadband connection, even including audio files of sample calls. Call quality on a cable connection is judged excellent, but using Ooma on a 3G network, not surprisingly, requires an excellent signal.

Review: Ooma Core Home Phone System Review, Editors of EVDOInformation.com, April 27, 2009

5. DSLReports.com

Ooma earns top ratings here based on enthusiastic user-written reviews. Fewer than a dozen users have reviewed it at the time of our report, but all praise it for call quality and ease of use. Recent reviews also report improvements in technical support.

Review: Ooma, Editors of and Contributors to DSLReports.com

6. Amazon.com

Over 450 owners review Ooma here, with about 87 percent of the reviews reasonably positive. Most of the complaints relate to inaccessible or poor technical support.

Review: Ooma, Contributors to Amazon.com

7. PC World

Probing the fine print, editor Robert Mitchell looks at four VoIP services to see if their unlimited plans are really unlimited. He reports that Ooma limits its customers to 3,000 minutes per month, though the company says this is to prevent call centers from using their service.

Review: For VoIP: What Part of Unlimited Don't You Understand?, Robert Mitchell, InfoWorld, May 8, 2009

8. FierceVoIP.com

This article explaining Ooma's business model reinforces the probability that Ooma will stay in business despite offering free ongoing service, in part because the company plans to refresh its hardware about every two years.

Review: The Ooma Conspiracy or Why Vonage is Ultimately Doomed, Doug Mohney, March 19, 2009

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