Ooma's next-gen 'free' phone system, the Telo, is finally available
The Ooma Telo costs $249.99 for the hub (right) and $49.99 for the handset, which will be available in November.
(Credit: Ooma)You probably don't remember it, but way back in January, at CES, a little company called Ooma unveiled its next-generation phone system, the Telo, which combines DECT 6.0 cordless-phone technology with Internet-based (VoIP) calling. Well, after nearly 10 months of waiting, the Telo is finally landing in stores and is available for $249.99.
Ooma's claim to fame is that it sells VoIP phone systems that let you make free domestic U.S. calls and low-priced international calls. To help drive home the point that you don't have to pay for phone service, Amazon labeled Ooma's first product, which remains on sale, the Ooma Core VoIP Phone System with No Monthly Phone Service Bills.
Once you shell out the $250 for the Telo, you can make unlimited domestic calls for free, and such features as caller ID and access to online call logs are included at no additional charge. If you want to port your existing number, that will cost you $39.99, but if you want a brand-new number, you don't have to pay anything.
From a design standpoint, the Telo is sexier-looking than its predecessor and more importantly, improves on the feature set, as well as on the call quality. While you can connect a standard cordless phone to the Telo, in November Ooma will also begin offering its own handsets for the system at $49.99 a pop (up to six Ooma handsets can be added to the system). Oooma reps are also highlighting how you can have calls from your cell phone redirected to the Telo.
Now, if you're wondering how Telo makes money, the company does offer a premium service plan. (You're looking at a freemium/premium business model.) Ooma's optional Premier costs $9.99 per month and includes the following features:
- Enhanced Voicemail: Listen to voice mail through the speaker of the Ooma Telo device or forward voice mail and listen to messages on a mobile phone or a computer.
- Call Screening and Intercept: Listen through the speaker as callers leave their voice mail. Pick up at anytime to answer or tap a key to send the call away.
- Personal and Community Blacklists: Tap into Ooma's extensive database of telemarketers and phone spammers and have the option of blocking unwanted callers or sending them straight to voice mail.
- Multi-Ring: Configure your Ooma system to simultaneously ring or forward a call to a mobile phone.
- Three-way Conferencing: Easily talk to two parties at once with easy three-way conference calling.
- Personal Number: Choose a second number anywhere in the U.S. and have it ring distinctively so you know who the call is for.
- Instant Second Line: Always have an available dial tone even if someone else is using the phone; users can also make or take a second call without missing a beat. (This feature requires an Ooma Telo Handset, which will be available in November.)
We'll be getting a Telo in for review and we'll let you know how it performs as soon as we put it through its paces. If it's as good as it seems, it might be time for this blogger to ditch Vonage, which currently charges a base fee of $24.95 a month for unlimited domestic and international calls to 60 countries, so long as you lock into a one-year contract.
Anybody excited by the Telo? Let us know what you think.
Hunkered down in New York City, Executive Editor David Carnoy covers the gamut of gadgets and writes his Fully Equipped column, which carries the tag line "The electronics you lust for." He's also the author of "Knife Music," a novel. E-mail David. Follow David on Twitter. 
This thing should be getting all the press possible......
A phone that lets you make domestic calls for free???
Wow, to be expected..............................
They are offering a service that uses the internet connection you already pay for. Thats like saying your internet browser is taking advantage of the infrastructure you pay for. This is why people are mad about these types of calls being disrupted via the ISP. You are paying the ISP for their services at a certin speed (say 1.5mb/sec) and maintenence of their systems. Yet the ISP's set the rules for how that speed is governed and the traffic that flows accross it. My only phone + internet option where I live is Embarq I don't even get a 1/3rd of the speed I pay for, ever (I know a number of factors contribute to this, but I've controled for as many as I'm able). I'll be trying clear wire soon, but I don't like the idea of a completely wireless connection and I doubt they will be any better.
Note that this thing is not like a Majic Jack...Much better because it doesn't need to be attached to a computer.
Just to be clear, as an existing Ooma Core customer, the annual Regulatory Recovery Fee mentioned above will not apply to you.
That $11/month doesn't sound bad compared to Vonage's $24. But now add on $250 for the Telo, $50 for each handset and $39 to port your phone number. All those are costs you don't have with Vonage. You can pay for several years of Vonage before you break even on buying a Telo. Cable phone service is even cheaper than Vonage.
Those old Ooma customers have different agreements than Telo buyers so the savings is just not there for a Telo buyer. Telo is too much for what its offering.
2. You don't have to port over a number.
3. You don't have to pay $11 a month for call-waiting and voicemail.
You can simply buy the hardware and that's it.
The $11 a month is optional and it's actually really cool if you choose it.
For example, you get two numbers, FREE number porting, multi-ring=ringing your home number and cell at same time, and the greatest feature is that it'll email a mp3 of your voicemail to an email account if you chose. No, Vonage doesn't compare, it's quality isn't as great and lacks the same features...
ooma? 8.33/month for premier ($100/year includes number porting; local number in FL; extra line) + the ooma core/scout $242 = $342 for the first year. I bought mine through Costco and got an extra 6 months of Premier and $50 buck Intl calling. $100 each year AFTER the initial hardware cost. Oh, yeah, I get 5000 min thrown in (see below I barely can use 500).
That is simply a lot cheaper overall. You know that Vonage's cost will keep increasing. The most that ooma can charge is the cost for the extras. No matter what - Vonage will always have a higher annual charge for what I am actually using (I can barely use the 500 min that I DO have).
---------------
Account Notification: Update to Terms & Conditions
Dear ............,
It's been a busy several months for us here at Ooma, but we wanted to stop and say "thank you" for being part of the Ooma family. Your support and guidance is what has made us successful so far, and we hope we can count on your help in the future too.
We are making some changes to our Terms and Conditions and to our pricing. For all our existing Ooma Core customers, these changes are limited. Here is what applies to you:
* We've increased your minutes of residential, domestic calling to 5,000 minutes per month
* We've reduced the monthly subscription price for Ooma Premier to $9.99 (from $12.99)
* We've grandfathered existing Ooma Premier annual subscribers at the previous rate of $99.99. New annual subscriptions will be priced at $119.99
* We've implemented billing for 411 (directory assistance) at $0.99 per call (800-GOOG-411 or 800-FREE-411 are free options). This charge will be deducted from your Ooma prepaid calling account
For new Ooma customers, here are highlights of our new Terms and Conditions:
* 5,000 total minutes per month of residential domestic calling
* Ooma Premier monthly subscriptions are $9.99/month
* Ooma Premier annual subscriptions are $119.99/year. This now includes either one free number port ($39.99 value) or a free Ooma Telo Handset ($49.99 value)
* $11.75/year Regulatory Recovery Fee in Years 2 and beyond to cover taxes, regulatory fees and other costs
* Voicemail is now bundled with Ooma Premier
* 60-days of free Ooma Care telephone support. Thereafter, non-Premier customers receive free email support and may purchase Ooma Care telephone support for $39.99/year
Just to be clear, as an existing Ooma Core customer, the annual Regulatory Recovery Fee mentioned above will not apply to you. You will also continue to receive voicemail and free unlimited Ooma Care telephone support without subscribing to Ooma Premier.
As you can see, we have improved the terms for you, our current customers. We have maintained our commitments to you while improving our residential service and reducing the monthly charge for Ooma Premier. We have made slight changes for new customers to reflect our latest business activities and to be more in-line with current market conditions. If you have any questions about the new terms and conditions or the new pricing, please comment on our blog or send us an email.
Thank you again for being an Ooma customer.
Until later,
Team Ooma
The $250 seems like a lot... and i tis. But for most, you'll start making your money back after 4-5 months so it's well worth the 'investment'.
$250 for the Telo
$50 for the handset (free if you sign up for the premier service under the current promotion)
$11.75 per year (after the first year which is generously included) for the taxes and regulatory fees
$120 per year for the premier service (basically to just get voice mail, since the other features are nice but not necessary)
That's a lot of gelt for a supposedly "free" service
- by Steve923 October 4, 2009 1:16 AM PDT
- MagicJack comment- I don't know if they have improved but 1-1/2 years ago I was able to place calls with no problem but it was impossible to use my keypad to enter touch-tone numbers. There was too much echo or something. I bought MJ to call the "free conference call" lines which require you to enter a code to join the call. I tried several times and never succeeded.
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