My Ooma service has been working fine for months, but suddenly, on Christmas Day, I had no phone service all day - flashing red Ooma light. I tried everything I could think of: power cycled everything in different orders, bypassed the router, etc. etc. - always just got flashing red light and busy tone. The internet was working perfectly the whole time.
I searched the net (and this forum) for either outraged customers, or troubleshooting tips, but found nothing. So I assumed my box must have failed. (Naturally this would happen on Christmas Day - the one day when I really need to call my family around the world ...and a day when there's no support available.)
Later - around 9pm - I checked dialtone and everything was working again - too late to call family in the UK, unfortunately - and it's has been working normally ever since.
Did anyone else have a problem? If not, then can you explain what happened?
I have no idea of this person's whereabouts or if this is even related to your problem. Some similarity to what you report and on the same day.