Running the Ooma Numbers

2010 April 10

Update: For a limited time, save $50 off Ooma and get free shipping!

The Ooma Telo has potential to save you lot’s of money, even with the high initial cost.

Let’s look at a hypothetical scenario, which is probably common:  you already pay for a high-speed internet connection, and you’ve also still got the ol’ analog land-line service that you’re paying for.  You’ve got your cell phone for long distance calls, but you still like the land-line because the call quality and the cordless phones scattered throughout the house and … well, let’s face it, you are old school.

As long as you have a DSL or cable internet connection, you’ve probably got enough bandwidth for good voice quality using Ooma or any other VoIP service.  Just to be sure, head over to http://www.whichvoip.com/voip/speed_test/ppspeed.html to verify that your internet connection is sufficient for VoIP service.

How much will Ooma save you?

Let’s stick with the basic Ooma setup.  $250 for the new Ooma Telo box, and you are going to use your existing home phones (no need to buy the Telo handset).  $40 to have Ooma port your existing home phone number.  No monthly fees with basic Ooma service, but $11.75 per year after the first year.

Ooma Land-line
Year 1 $290 $300
Year 2 $312 $600
Year 3 $324 $900

Hopefully that is pretty clear. You start saving a bundle of money after the first year. Even if you must pay an extra $10-$15/month for a higher-speed internet connection to support VoIP, you still are saving money by year 2.

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