354% increase in taxes and fees--are you kidding?

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germ
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354% increase in taxes and fees--are you kidding?

Post by germ » Sun Dec 11, 2011 9:34 am

Like I presume many other long-time subscribers, I got the email on Dec. 9.

ooma is increasing the "taxes and fees" by a whopping 354% (from $11.75 a year to $3.47 a month). :shock: :shock:


There is no actual explanation of this, either in the email or in the F.A.Q.

What I want to see is documentation that shows that these taxes and fees really increased by that amount. I doubt that is the case.

Looks like ooma is taking us for a ride, or should I say a robbery??

murphy
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Re: 354% increase in taxes and fees--are you kidding?

Post by murphy » Sun Dec 11, 2011 9:47 am

The taxes and fees didn't increase.
The $11.75 per year was way too low to cover the actual costs.

For comparison the taxes and fees on my basic Verizon landline are $8.57 per month.
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lbmofo
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Re: 354% increase in taxes and fees--are you kidding?

Post by lbmofo » Sun Dec 11, 2011 9:53 am

Don't think Ooma is taking anyone for a ride. Ooma just needs to recover the $ spent on regulatory related expenses and charges.

IMHO, one ought to look at it this way: If home phone bill was $60 a month,

Savings was 98% per month @$11.75/year but now with new RRF structure @$3.47/month, still 94% savings per month. The savings on home phone bill using Ooma is nothing to sneeze at.

Here is the previous thread on this topic: viewtopic.php?t=11810
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highq
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Re: 354% increase in taxes and fees--are you kidding?

Post by highq » Sun Dec 11, 2011 9:54 am

No going on any ride and no robbery. Ten seconds in any browser will give you a summary of the four components of that $3.47/mo. with additional detail optionally available for each one. Visit https://go.ooma.com/tax_calculator.

germ
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Re: 354% increase in taxes and fees--are you kidding?

Post by germ » Sun Dec 11, 2011 10:19 am

OK, so the taxes did not increase.

My problem is ooma misleading customers making them believe that $11.75 per year would cover those costs, then applying a huge increase after one year. If $11.75 was good so far, why isn't it good anymore?

Cyberchat
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Re: 354% increase in taxes and fees--are you kidding?

Post by Cyberchat » Sun Dec 11, 2011 10:35 pm

Re: 354% increase in taxes and fees--are you kidding?
Just in case someone might have missed this communication from OOMA, here it is again!

"It is our mission here at Ooma to save you lots of money every month by providing you free home phone service. As you know, your only obligation is to pay applicable taxes and fees.

Why does Ooma charge taxes and fees?

Telecommunications is a highly regulated industry and subject to laws, regulations and taxation at the city, county, state and federal levels. Ooma is required to pay taxes and fees so we can operate within and comply with laws and regulations mandated by the government. Where permitted, we pass those taxes and fees on to customers through line item charges.

What taxes and fees does Ooma currently charge?

Since April 2010, Ooma has charged its new customers fees of $3.47 per month exclusive of any additional state and local taxes, fees, or surcharges. These taxes and fees of $3.47 split into the following categories:
•Regulatory Compliance Fee - $1.59
•911 Service Fee - $1.59
•Federal Universal Service Charge - $0.29

To learn more about taxes and fees, please see our FAQ.

How are my taxes and fees changing?

As a customer who purchased Ooma prior to April 2010, you have paid reduced taxes and fees of $11.75 per year. Per our standard terms and conditions, these taxes and fees are subject to change and beginning your third year of service, your taxes and fees will change to $3.47 per month.

In the future, Ooma may be required to collect, on behalf of local governments, additional state and local taxes, fees, and surcharges where applicable.

For more information on taxes and fees, please see the Taxes and Fees FAQ. Or call us, free of course, at 1-866-711-6662, Monday-Friday 8am-5pm PDT.

Thank you for your continued support."
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