Let me start with my apologies. It’s obvious that we weren’t clear enough about the changes we are implementing at Ooma and what the impact may be on you. So I’m going to try and break down each case for you and what the relevant changes are that may impact you.

Ooma Hub/Scout Combination Products (Includes all Costco.com purchases)

1. Current Ooma Core Users
   a. No changes to your current feature set including voice mail.
   b. No annual regulatory recovery fee will be charged.

 

2. Current Ooma Premier Users
   a. No changes to your current feature set.
   b. No annual regulatory recovery fee will be charged.
   c. If you are paying monthly for Premier, your monthly price will change to $9.99 from $12.99.
   d. If you wish to buy an additional year of Premier at $99.99, you have until 12/31/09.

 

3. Current Ooma Premier Trial Users
   a. No changes to your current feature set.
   b. No annual regulatory recovery fee will be charged.
   c. If you want to purchase an annual Ooma Premier subscription, you can do so until 12/31/09 at $99.99, after that the price will go up by $20 to $119.99.

 

4. New or Unactivated Ooma Hub/Scout Combinations
   a. No changes to your promised feature set, includes voicemail and a 60 day Premier Trial.
   b. If you want to purchase an annual Ooma Premier subscription, you can do so until 12/31/09 at $99.99, after that the price will go up by $20 to $119.99
   c. No regulatory recovery fee will be charged

Ooma Hub Only Product at Costco Stores

1. Current Ooma Core Users
   a. No changes to your current feature set including voice mail.

 

2. Current Ooma Premier Users
   a. No changes to your current feature set.

 

3. Current Ooma Premier Trial Users
   a. No changes to your current feature set.
   b. The regulatory recovery fee applies per the original terms and conditions.

 

4. New or Unactivated Hub Only Prodcut
   a. Basic voice mail is now included in Ooma Core.
   b. Enhanced voice mail is available as a standalone option for $49.99 per year if you don’t want to purchase all the Premier features. Enhanced voicemail includes:

• One touch access to voicemail, call screening
• Remote access to messages through any web browser or telephone
• Voicemail notifications to your mobile phone
• Voicemail mp3 audio file attachment sent to your email
• Send-to-Voicemail
• Do Not Disturb

c. If you want to purchase an annual Ooma Premier subscription, you can do so at $99.99.
d. The annual regulatory recovery fee applies per the original terms and conditions

Ooma Telo Product

1. Newly Purchased Telo’s
   a. Includes US domestic calling, a free phone number, call waiting, caller ID and 911 service. Basic voice mail now included in the base service of the unit.
   b. Telo’s come with a free 60 day trial of Ooma Premier, which costs $9.99/mo or $119.99/yr.
   c. Enhanced voicemail is available as a standalone option for $49.99/yr if you don’t want to purchase all the Premier features. Enhanced voicemail includes:
   • One-touch access to voicemail, Call screening
   • Remote access to messages through any web browser or telephone
   • Voicemail notifications to your mobile phone
   • Voicemail mp3 audio file attachments sent to your email
   • Send-to-Voicemail
   • Do Not Disturb

   d. Telo’s come with an annual regulatory recovery fee of $11.75 beginning the second year of service.

2. Previous Ooma Hub Owners
   a. Previous Ooma hub owners (Core or Premier), can move their accounts, phone numbers, and features to the new Telo service including voicemail, and will not be subject to the annual regulatory recovery fee.
   b. The used Ooma Hub may be resold but will require a $59.99 reactivation fee to assign a new number and owner. When activated, the new account will be subject to the $11.75 annual regulatory recovery fee.

Some of you have asked what the regulatory recovery fee is for, so let me explain why we have implemented it. If you have ever looked at your mobile or landline phone bill, you regularly see fees and taxes applied that are typically 15-20% of the monthly bill. In other words, these fees can be quite significant. Here at Ooma we, like every other phone service provider in the US, have to charge a fee to cover taxes, regulatory recovery fees, and other costs related to our providing phone service to your local service address but to our knowledge our charge is significantly lower than what others typically charge. We’ve tried to maintain this cost as low as possible and it is less than $1 per month. While this is not a huge cost to provide you phone service, we realize we did not ask any of our current customers to bear this fee at the time they initiated service, so we’re not asking out current subscriber base to pay this regulatory recovery fee.

Thank you,
Rich Buchanan