By Sharla Sikes

A new startup gained lots of media attention with its announcement of free VoIP calling. ooma Inc. plans to offer a $399 gadget for free, unlimited domestic VoIP calling for customers with broadband Internet service.

“It’s nothing like anything a carrier can do currently,” CEO Andrew Frame said. “Once you own the box, you don’t have to pay ooma anything in the future.”

Also free is a second line, conference calling, voice mail and an online “lounge” that acts as a customer control panel. ooma’s services went on sale July 19 by invite only to selected U.S. residents.

Home-based and small businesses are the focus of ooma’s business. The center of its system is the Hub, a small white device that connects the user’s broadband Intnernet and home phone handsets. The Scout, purchased separately, will connect to other phone extensions throughout the house. ooma’s Hub produces its own unique dial tone, and users access voice mail through a button on the Hub. Placing international calls requires a credit card.

The Hub works through a patent-pending call-routing algorithm called “distributed termination,” like peer-to-peer and distributed computing, that enables callers to skip fees for phone calls. Users who maintain their landlines (mostly to ensure 911 service, the bane of VoIP) give the network a boost, since other users can “piggyback” that connection, and call-routing software prevents a party-line situation. Frame said that there is typically plenty of unused bandwidth available during the working day.

ooma can be sure to expect heavy resistance from traditional phone providers, and other hurdles include price: The calling is free, but the Hub is not, and those who prize free calling may balk at the $399 price tag.  

The official product launch is set for Sept. 2007. Next on ooma’s list is developing a method to forward calls to cellular phones.

Related Content

Subscribe to the post comments feeds or Leave a trackback