said by dvd536:
Sounds like a ponzi scheme to me.
That was my impression of Ooma too. There's no way anyone can provide free service forever, for a one-time $200 charge. The new customers will be paying the freight for the existing customers.
My guess was that they would terminate service after you consume about $200 worth of call time. They'd coyly scratch their heads and say "your hardware must've gone bad." In effect, the hardware would be a proxy for prepaid time.
But, an Ooma customer said it's in the ToS that they reserve the right to begin charging for service after 2-3 years.
If true, that makes more sense. And, makes Ooma similar (price wise) to Vonage, et. al. at about $80 per year.
Like Preston said, it's a lot of money to put at risk. A person can get MJ with twice the time for half the price (device and 1 initial year + 5 years for $100). Or, have the option of going yearly for $40, and $20 each additional year).
I wouldn't doubt Ooma has more features and higher quality/reliability. For someone who wants always-on, whole-house service it might be a good choice.
Ooma has a bit of a dark spot in its history. They had a strange idea to share each customer's landline (if the customer had one) to terminate calls of other Ooma customers. They apparently snuffed that out after all the negative publicity (violating the customer's agreement with their telco, calls subject to eavesdropping or termination by the owner of the landline your call is terminated on).