Local Phone for (Darn Near Almost) Free

September 7, 2009

I keep my ears perked for businesses that leverage Internet infrastructure – mainly because such businesses are potential customers for SoftLayer. Occasionally, I become a customer of the businesses that I hear about.

I took the plunge with one such company after loosely watching it for a year. In the summer of 2007, a friend of mine moved his home phone service to Ooma. Basically, it is local phone service with no monthly bill. Zip. Nada. $0.00 per month. To top that off, the quality of service is very high.

Now, it’s not totally free phone service because you have to have a high speed internet connection to run it. I suspect that if you are reading this, you do. By the way, I have fiber going to my house, and I have 20 Mbps download and 5 Mbps upload speed. I can get 50 down and 20 up should I ever need that much bandwidth. If I wanted local phone service from my local phone company, they would provide it through this fiber (not copper) at a price of about $45 per month plus taxes and fees. That means the monthly bill would be about $60 when it’s all said and done.

We yanked our landline when the fiber arrived 4 years ago since each family member at that point had a cell phone. Going all cellular has been pretty much fine except for a few minor hiccups. Sometimes, one of us has been unreachable at the house because of either a dead battery, phone set to silent mode, cellular network congestion, or the fact that the ringer just can’t be heard throughout the whole house, even at full volume. None of these, however, was worth an additional $60 per month to solve.

OK, back to Ooma. My friend has had it for a year with no problem. He loves it. It works perfectly with high quality. On top of that, Ooma is now sold at Costco for one-third lower than what he paid for it. You buy the device for a one-time fee up front and never have a phone bill. After three months (usually), you’ve made your money back in savings.

So a month ago, I bought it. It took 20 minutes to set up, and I’m a finance guy. If you’re a techie, I’ll bet you’re running in 10 minutes or less. It has worked flawlessly since. The sound quality is fantastic. There are more features and add-ons than I can mention here – go browse their website for more. The snarky ad video is worth the 45 seconds to watch it. In short, I highly recommend Ooma.

To keep things balanced, the ONLY advantage I see to a copper line is if there is a power outage and your broadband modem/router is down, the local phone is down. But if your home phone is cordless with a powered base unit, the copper line is down in that case too. And if the aliens from District 9 show up, the copper lines will be flooded too I’ll bet.

Ooma is just another example of how the Internet and its supporting infrastructure is not only here to stay, but to keep growing as traditional telecom infrastructure slowly dies. At SoftLayer, we’re here to make sure our innovation supports businesses that grow by leveraging Internet infrastructure.