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#74117 by lbmofo
Mon Jan 31, 2011 5:15 pm
I think as long as Ooma doesn't get reckless in customer acquisition expeditures, I think they will do just fine.

Ooma has already done a great job in making their products widely available online and at many reputable retailers nationwide so I am guessing the business is growing at a pretty good & managable pace yet without a huge price tag.

Taking a look at some cost figures with Vonage, it costs roughly $8, $9 to provide telephony services per line; this is figuring all their Vonage World customers who I am sure are making bukoo loads of international calls.

Therefore, I am sure the cost per sub is considerably less for Ooma (Ex Ooma CMO puts it at roughly $1.75 a month; see below). This figure is relevant in the arena of providing basic/core service with whatever profit Ooma made with selling the hardware.

Then, you got the Premier subscribers (I've seen anywhere from 20% to 40% of the userbase reported) and the folks who subscribe to different international packages not to mention the pay per use prepaid international (I have a friend who pays about $20 a month in prepaid international calls because he thinks the volume of calls is only temporary and doesn't want to sign up to an international package; it has been that way since he signed up mid last year :)) and Ooma app users. I am also guessing that Ooma earns about 50% of the porting fee as net; and lots and lots of folks choose to port.

Hence I think Ooma is doing just fine. My 2 cents.

About what the Ex Ooma CMO, Rich Buchanan, said about what the cost is per sub:

Rich was talking about $1.75 a month @0.5 cents per min worst scenario termination cost with average of 350 outgoing minutes; he was talking cost per sub of about $21 a year. BTW, Rich was figuring the life span of the Ooma device @ 5 years. ... 2009-03-19

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