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#29947 by robl45
Thu Oct 29, 2009 5:07 am
so I've been reading about ooma for about a month now after I signed up for ATT Uverse service and was told their was no fees on my service. turns out there is like 7 dollars a month in fees so I started looking for something else.

Now here is the issue I have with ooma. I don't care about a 12 dollar fee each year, thats really insignificant. What I do care about is the fact that people buying the core aren't paying any fees each year. So what does that mean for Telo users aside from the fact that we are subsidizing old users? What it seems to me is telo users are ripe for increases on the fees while hub users will never pay a fee. Will current users who buy now for the 12 dollar fee be guaranteed of no rate increases on that fee? Otherwise whats to stop ooma from just increasing the fee over and over until I might as well stayed with my current provider.

What about the premier service? Why would anyone would sign up for that when they just keep increasing it? You've seen it once and its 20%, does anyone think it won't stop?

Frankly I like the telo better, its newer, the fee doesn't bother me, I could care less about the caller name feature, the DTMF tones are more important to me.

But It will be a cold day in you know where before I end up paying more and more each year while hub users never pay a fee again.

So it would be nice to get some knowledgable responses from OOMA on this issue. If the fees will be grandfathered in, then I will buy one tomorrow. But to just buy blindly, hand OOMA my credit card and wait for fees to go from 12 dollars a year to 100 dollars a year while I subsidize hub users is not cool.
#29948 by Groundhound
Thu Oct 29, 2009 5:31 am
Like all companies, Ooma reserves the right to change its terms & conditions at any time. What keeps them from ramping up the regulatory fees to $100 per year? Competition - people will go elsewhere if Ooma is no longer a good deal. In grandfathering in the old hub users, Ooma is trying to be true to what those customers understood they were purchasing. How Ooma treats its old customers is a good indication of how they will treat you as a future customer. While they've made some missteps along the way, ultimately Ooma has treated its existing customers fairly as they have modified their business model to keep the company viable and allow for sustained growth.
#29950 by robl45
Thu Oct 29, 2009 5:55 am
while I understand what you are saying, I'm more concerned on how they are taking care of new customers as well as current customers. The fact that they aren't billing and have no way of billing old customers tells me that new customers are going to bear the brunt of this.

I guess the bottom line is this, if you grandfather the old customers in at no regulatory fees and you grandfather anyone who buys a core system in at no regulatory fees, then shouldn't customers who purchase at 11.75 regulatory fee be grandfathered in too? I'm sure everyone can see where I'm going with this. Otherwise, all the new customers are going to be footing the bill for the company and frankly new users should not be footing the bill for 80000 existing users. Thats called a Ponzi scheme in most places.

I really want to buy this thing and get rid of AT&T, but Its looking more and more like I have to sacrafice DTMF tones and just buy outdated technology to insure that I won't get slammed with fees.
#29952 by Groundhound
Thu Oct 29, 2009 6:31 am
robl45 wrote: Thats called a Ponzi scheme in most places.

I think you should stay with AT&T.

For others who might read this though, the decision to "grandfather" a policy must come at the time a change is made. It cannot be made in advance against all future unknown regulatory changes, as that would cancel Ooma's right to modify its T&C. Regulatory charges today are typically made as a percentage of the revenue from ongoing phone service, and the ongoing revenue from old Ooma Hub users for phone service is $0. So there is no issue of future users footing the current regulatory bill for existing users. But what if the laws change? Suppose the government decides to charge all VoIP users a tax that is not a percent of revenue to pay for some new program? At that point the T&C would have to change again, and no one would be grandfathered in.
#29953 by robl45
Thu Oct 29, 2009 6:37 am
hence the main issue, we have reached the point where people signed on for a reason, they spent the money for the hardware and the calling is supposed to be free.

And that is the very point here, 12 bucks a year is not a biggee, but paying for the hardware and then having non free phone service is kind of a problem, if you don't understand that, well that is fine.
#29955 by Groundhound
Thu Oct 29, 2009 6:50 am
robl45 wrote:hence the main issue, we have reached the point where people signed on for a reason, they spent the money for the hardware and the calling is supposed to be free.

And that is the very point here, 12 bucks a year is not a biggee, but paying for the hardware and then having non free phone service is kind of a problem, if you don't understand that, well that is fine.

Make no mistake, I understand you very well.
#29972 by WayneDsr
Thu Oct 29, 2009 8:45 am
I paid AT&T almost $1000 a year (and was a customer for 25 years) Each year of that 25 years my TOS changed. Always in the upward direction, of course. Each year, another tax, another fee, whatever. I excepted this as standard procedure.
Today, for the cost of the hub up front, I pay nothing per month. If I have to pay 12 bucks a year, then the cost went up to $1.00 per month. If I add Premier it's $12.00 per month. FREE it isn't, but FREEING me from AT&T it is!

I've been an ooma customer for almost a year and this is the first change I've seen or read about. Not bad. And the company is first rate. That has to be considered in the equation. Not just the FREE part.

#30020 by DrewAZ
Thu Oct 29, 2009 4:07 pm
I agree with Wayne. I had been paying Qwest $45 a month ... up from around $30 several years ago. My service was sometimes inconsistent and their CS was generally poor. Since switching to ooma I have had nothing but clear and consistent calls and I like the Premiere services and don't mind paying a little for them. And I am really happy to be free from Qwest. If my costs with ooma get unreasonable I will look for something else.

Although these forums are loaded with a few people that have had problems, I would bet that the vast majority of users are not having problems and would have no reason to visit here.
#30071 by robl45
Fri Oct 30, 2009 5:02 am
I agree with what you guys are saying, you can always switch to something else, but everything else doesn't have a huge fee upfront. So switching not really feasible after you commit to this until at least a year down the road.
#30076 by mezzy316
Fri Oct 30, 2009 5:42 am
As a former AT&T customer, I say get out as soon as you can. I read forums, amazon reviews, and everything else under the sun for months until I finally made the change. I wish I had sone it sooner. I was paying AT&T $45 per month for local service, no long distance. That meant I had to use my cell for any long distance calls, and the signal at my house is terrible, so I spent have the time up against the window or standing on the porch trying to get a signal.

Once I switched to Ooma I could call long distance from home, meaning my cell usage dropped the the point that I lowered my cell plan and saved another $20 per month. Yes, I paid $200 up front for the Ooma equipment and $40 for the port, but I'll make that up in 4 months. 4 months! On top of the money I save, I can call long distance from home without standing outside in the snow trying to get a signal.

The call quality is great, installation was a breeze, and I have no problems getting through to CS (ever try to call AT&T CS? Good luck). Sure I'm having a problem with my Outbound Caller ID that hasn't been resolved, but I'm confidernt they'll fix it, and I love my service. On top of that, you'll never find a more helpful group of people than the posters on this message board.

As for the fees, I have the core, so I don't need to pay any. But since I'm saving almost $800 per year, it wouldn't really bother me if I had to pay a small fee like the $12 per year to keep this company going. And yes, the fees will probably go up in the future, but I doubt they'll increase as much as my cable bill usually does!

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