We just switched from Verizon and Vonage to Ooma. By my calculations, four months from now, the savings will pay for our Ooma equipment investment, and we should save over $500 for the next 8 months; and then almost $800 per year thereafter.

More and more, people are opting out of a home phone/land line system altogether. I thought about that too. We have 5 cell phones – and the bills that go along with them – so do we really need a home phone? The fact is, you never know where a person is when you call them on a cell phone. They may be at home. But they may be at a movie, too. What if grandma is calling and wants to talk to the grandkids? Do you want her to have to call three different numbers to be able to talk with everybody?
We have had two telephone numbers for 25 years. Early on, I used the one number to give to clients to call me, and the other was our private number, that we only gave to family and friends. The first time a client called our home number at midnight, I ordered our second line the next day. Phone lines were very expensive back then, in the last century. But it had other benefits as well. Telemarketers called the extra number, but pretty much left our personal number alone. When we got our first Internet account in 1994 (Compuserve), it was nice to use that line for our 2400 kbps modem. The justification for a second line always seemed to be there. Plus, it was a business write-off, so it wasn’t as expensive.
Verizon
Fast forward to 2009. We got our Verizon FIOS line in March 2008. Because we signed up for a two-year commitment, we couldn’t drop our Verizon phone service until the two years were up. I could have downsized to a different, less expensive service, but then the 2-year clock would start over, and I had other plans. I had already decided in early 2009 to switch to Ooma. But we had to wait for March 13 to come and we could make our change.
Vonage
I had switched our second “public” line to Vonage about 8 years ago. At the time, it was $15/month (plus taxes), and it seemed okay. I was regularly frustrated by Vonage’s outages, especially with their voicemail system. But they had changed the billing on this so that it was now almost $24 per month, after all of the fees and taxes were added in. So, between the two providers and two phone numbers, we were spending almost $75 per month for the two numbers.
magicJack
I should also mention that I bought a magicJack about a year ago, while I was researching Ooma. It was immediately obvious that this would not work as our home phone number system. Who wants to dedicate a 24/7 laptop to running your phone line? But I also wanted a phone number (other than my cell) that I could take with me anywhere, and mJ fits that bill. Sometimes I want to be able to call people and not let them have my cell phone number. I have a GrandCentral number (now GoogleVoice) and see all sorts of good possibilities here. My mJ is up for renewal ($20 for 1 year or $60 for 5 years) and I think I will just let it lapse and use my GoogleVoice account for these purposes.
But I will also say that I loaned my mJ to a friend who was going on a European cruise. He used it from the ship (via the Internet connection) and from hotels (via those Internet connections) and was able to call back to the States for free each time. As he said, he would have saved $20 (the cost of the mJ for the first year) just in the first 5 minute phone call he made from the ship.
Enter Ooma
In January, I bought our Ooma system on Amazon because they still had a few of the original systems (Hub & Scout, which allows connections for two phones) available for about $220. The new Ooma Telo system is about $250, and only allows one phone to connect. You can port your existing phone number(s) for a one-time $35 fee. After that, you’re done with paying anything for your phone service. Ever. Just keep your Internet connection, and you have your phone number. [Update: They are running a special for a $100 Hub. This is what you need to get started with your line and one phone; then you add Scout(s) for your additional phones.]
But if you go with their Premier Service – at $120 per year – you get the number porting for free, plus you get a second line for free. You get all kinds of other bells-and-whistles with the Premier Account also, so it is well worth it. So here was the breakdown for us:
Before Ooma: $888 / year
$600 for Verizon ($50 per month X 12 months) – Line 1
$288 for Vonage ($24 per month X 12 months) – Line 2
After Ooma: $120 / year
Premier Service annual fee
Setup was very easy.

We are running a 25Mbps/25Mbps Verizon FIOS line because of the 7 computers we have going at once, not to mention the media streaming that we are doing (hulu, Netflix, Grooveshark, etc.). The voice quality is very good. And the features are just awesome. For example, you can setup a list of numbers to perform certain functions any time that number calls, like:
- Always send them to voicemail, automatically.
- Play the “This number is no longer in service” recording
- Make it just ring and ring and ring and ring (never going to voicemail)
All of that is cool. And useful. But the feature I am most looking forward to is the feature that started it all, and why I settled on Ooma: Quality voice system for almost $800 per year less than I was paying last year at this time.