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#6304 by MadCityGuy
Sat Apr 11, 2009 9:53 am
Ooma's original price included lifetime Premier and people who bought it at that the higher price have been grandfathered in. The original price was $400 which was just too high for people to pay before they had a chance to see how the service performed. Dropping the list price to $250 and adding Premier as an option was a very smart move that I'm sure has resulted in many more subscribers. And, as I already mentioned, Ooma is already providing lifetime subscriptions to the first line to their subscribers for a flat fee. Premier service must be incrementally less expensive to Ooma than the basic service.
#6410 by scots
Mon Apr 13, 2009 10:36 am
lohertz wrote:I would assume Ooma's cost ARE mostly fixed.

Just like an ISP, there main cost is Fixed. Ooma and ISP's only need to have enough infrastructure (servers, etc) to handle the peak demands.


ooma's costs most certainly are not fixed. They have to pay a per minute charge to terminate the phone calls we all make, except in the case of ooma to ooma calls (one ooma customer calling another ooma customer). The cost for terminating calls vary depending on what company the call is being terminated with, but it can add up to quite a bit when multiplying by tens of thousands of customers who call anywhere from 300 (guessing at a minimum) to thousands of minutes per month.
#6560 by MadCityGuy
Mon Apr 13, 2009 1:14 pm
There's a really interesting article about Ooma's finances here:

http://www.fiercevoip.com/story/ooma-conspiracy-or-why-vonage-ultimately-doomed/2009-03-19

There are a few interesting notes. Yes, Ooma pays for calls TO the PSTN, but it also gets revenue from calls that come FROM the PSTN. I'm sure I spend a lot more time on the phone on incoming calls than I do on outgoing calls.

Second, Ooma is planning to refresh hardware every 2 to 2 1/2 years - their definition of lifetime isn't really lifetime.

I'm surprised, apparently about 25% of Ooma customers are paying buying Premier. So much for my thought that Ooma customers were driven by the one-time payment premesis.

I now think that if Ooma wants my money for Premier they are going to have to charge $200 or less. They will make plenty of profit on an up-front $200 payment, particularly if I end up replacing my Ooma with a new unit in four or five years (and starting all over again).
#6680 by hwgang
Mon Apr 13, 2009 2:59 pm
Hey guys, ooma DOES OFFER lifetime premier service. They just don't make much noise about it.

It's $349. :-)
#6710 by number9
Mon Apr 13, 2009 3:14 pm
hwgang wrote:Hey guys, ooma DOES OFFER lifetime premier service. They just don't make much noise about it.

It's $349. :-)


Hwgang, do you have a source for this?
I'm still on the fence about lifetime premier service. I want ooma to make some money to do upgrades and R&D. I'm not convinced this would be the right move. I will keep an open mind about it though.
#6765 by hwgang
Mon Apr 13, 2009 3:53 pm
Hwgang, do you have a source for this?
I'm still on the fence about lifetime premier service. I want ooma to make some money to do upgrades and R&D. I'm not convinced this would be the right move. I will keep an open mind about it though.


Before I ever became an ooma customer I asked about lifetime premier. I needed to port two numbers, premier service then wasn't an option but a necessity and I'm all about upfront costs that save monthly expenses. I was told they offered it.

More importantly, prior to posting here I specifically asked Bobby B if I could mention it since a) their plate is undoubtedly full today with the outage and this would be news to many subscribers since they don't talk about it and b) like you, Numero Nueve, I can see conflicts as a supporter (but NONE as a customer!). His reply to my request: "Sure thing -- the lifetime $349 Premier subscription is kind of unadvertised, but you can go ahead and say whatever you like :)"

I look at it this way: ooma customers are so tickled pink with the service and costs that we are naturally suspicious. ooma addresses these suspicions on their home page so they are clearly prevalent. If I were investing in stock I'd check out all I could about a company....knowing that there are no guarantees. <haven't we all learned THAT lesson big time recently>

$250 plus $350 or $100 or whatever any of us chooses to invest in ooma products is small potatoes in the big world and we each have to trust our own gut instincts about the soundness of the plan and ooma's projected longevity.

Personally, I was convinced from the get-go that they'd built a better mousetrap. I saw signs of genius far beyond mine <as if>in their plans, hardware and offerings. Bottom line, I trust them and their investors to make smart decisions. If they were going to do some hit and run there are MUCH easier and more profitable ways to do that!

My comfort meter is set on HIGH here. Even the hiccup of the outage does not phase me. I embrace new technology but I'm tight with a buck and I jumped on board because the economics of it....even short term....were astounding to me and the service and features are the best I've EVER had.

Each of you must decide for yourself what your comfort meter is set at.

Off enthusiasm soapbox! ;-)
#6779 by WayneDsr
Mon Apr 13, 2009 4:10 pm
Thanks for the info, HWgang. I'm not sure what I want to do, but staying with ooma is a no brainer. Especially having deat with AT&T, SBC and so forth for 20 years.

Thanks again,
Wayne

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