Problems using My Ooma? Ideas on how we can make it better? You’ve come to the right place.
#54249 by hteinlin
Thu Apr 29, 2010 9:02 am
Can someone from Ooma officially verify if new activations on the Core units will incur the taxes/fees?

There's been confusion among new customers looking into buying the old Ooma Core units that are still available through some retailers.
The confusion being the latest change in April to monthly fees that now new Core activations will also have the fee depending on when it was activated.
#54253 by southsound
Thu Apr 29, 2010 9:41 am
I'm not from ooma, but what does the box say? Most or all hub/scout core systems tell of no fees for life. Check your box - it will give you the definitive answer and those terms WILL be honored by ooma.
#54256 by Dennis P
Thu Apr 29, 2010 10:08 am
If you buy a *new* Ooma Core bundle (Hub + Scout), there is currently no regulatory recovery fee associated with those systems. If you buy on the grey market, such as from eBay or Amazon marketplace, no guarantees can be made since the unit may be subject to re-activation.
#54277 by Aveamantium
Thu Apr 29, 2010 2:41 pm
lbmofo wrote:
hteinlin wrote:Dennis you mention the regulatory fee. That includes taxes as well? (or is that the same thing :?: )

Same thing. ;)

I almost had a guy break down in tears over that one... It was at an open house presentation discussing a "storm water fee" and he was overly determined that it was a "storm water tax". Semantics in my book... ;)
#54304 by hari
Thu Apr 29, 2010 5:00 pm
So, when I activate and login to my ooma, if it says "Base service tier: Ooma Core" under account, it should mean no regulatory recovery fee/tax associated with my account, correct? Note that, in my case, I activated a refurb hub purchased from Frys, and my account does show the service tier as "Ooma Core".

BTW, when called into customer service, many were informed that the T&C has been changed from Apr 5th or 10th (note the inconsistency here) and that all new customers activating with hub are also subject to the regularatory recovery fees/taxes, so a clarification here is much appreciated.
#54333 by sfhub
Thu Apr 29, 2010 8:49 pm
What matters most is what the registration process categorized you at.

That overrides what customer service may have told you.

Under MyOoma->Account->Services, if it says

Your service level is: Core
Taxes and fees: No payments due at this time, subject to Terms and Conditions

Then you don't have any fees.
#54336 by sfhub
Thu Apr 29, 2010 9:16 pm
Aveamantium wrote:
lbmofo wrote:
hteinlin wrote:Dennis you mention the regulatory fee. That includes taxes as well? (or is that the same thing :?: )

Same thing. ;)

I almost had a guy break down in tears over that one... It was at an open house presentation discussing a "storm water fee" and he was overly determined that it was a "storm water tax". Semantics in my book... ;)

It may depend on the subject matter, but for telephone bills, there is definitely a distinction.

Taxes are imposed by the government on the actual transaction and that amount goes directly to the government. They are collected by the company on behalf of the government.

Fees are charged by the company, usually to recover their expenses associated with some government regulation, but can include other items such as adminstration, processing, etc. What the company collects doesn't necessarily have to match their costs.

If you look at something like your cell phone or landline bill, there is a clear distinction between the "Taxes" section and the "Surcharges and Fees" section. Some folks get upset because Telcos have been known to charge "Fees" and name them just like a "Tax" hoping that the customer just glosses over it quickly and blames the government. They feel this is a deceptive practice because the money isn't being collected on behalf of the government and there is some incentive to artificially lower the advertised cost of service by shifting amounts into "Surcharges and Fees" section.

Just a totally fictional example, perhaps there is something called E911 fee. The government mandates everyone support E911 and allows companies to "recover" costs using a fee. It might be that supporting E911 is really just a $6k computer with $3k of software and $15k of consulting work, but the company might decide to charge a $0.50 E911 recovery fee to each of it's 1m customers. That brings in $500k/mo but doesn't raise their advertised price at all. The extra amount collected isn't going to the government despite a label that makes it look like a government tax.

Now Ooma advertises this as a RRF - Regulatory Recovery Fee. I don't know if there is any legal definition of what can be in an RRF. My guess is it is just like any other "Fee" charged by a Telco and can include any number of things.

At $0, nobody is going to complain. At $11.75/yr most people won't complain. At $3.50/mo, people start thinking, this really isn't "Free" anymore and why don't companies just advertised $4/mo service and do away with the "Fees" so we can really compare apples to apples. Keep in mind, Ooma hasn't started including State and Local taxes yet, so that $3.50 could start creeping higher as well.

I guess gone are the days when you could compare your Phone "Bill" against Ooma's "Free". Now you just compare your Phone "Bill" against Ooma's "Bill" No doubt Ooma is still much less than the Telco but conceptually the product has changed from pay up front so you never have to pay again, to pay up front so you pay less every month.

On a postiive note, Ooma is being good about honoring what they advertised earlier to current customers and making these changes affect only new customers.
Last edited by sfhub on Thu Apr 29, 2010 9:33 pm, edited 5 times in total.

Who is online

Users browsing this forum: No registered users and 8 guests