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 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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