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What is Ooma's Monthly Fee?

Updated on January 23, 2013

Saving money, oh yeah! You've heard that Ooma has a monthly fee, but you also heard that you can still save a heap of money with Ooma. Which one is it?

Want to See My Favorite Low-Cost Home Phone Provider? Click here for my review on Squidoo!

I am a major fan of Ooma and the cost-conscious option it provides for people like you and I who are tired of forking a ton of money over to the cell phone company every month. Last year alone, I spent over $1,400 for 2 cell phones and my home internet. I'm sure you can relate.

That's enough money for a nice vacation!

So let's see how much money Ooma can save you, Monthly fees included.

Picture above courtesy of freedigitalphotos.net. Thanks, guys!

How much will the Ooma Cost me Each Month?

Monthly Fees for the Ooma Telo

Originally, the Ooma was going to be entirely free. However, this wonderful nation we live in has to find a way to tax even free services, so, well...

Ooma Free

If you go with the basic, free plan that Ooma offers, you just have to pay taxes. (They even have a tax calculator to help you estimate your costs) Mine estimate out around $4.20 per month.

I could live with a $4 phone bill each month.

I heard some Ooma devices do not pay a monthly fee

They are becoming rare, but you can still purchase a brand new Ooma Core device such as this one sold on Amazon. These older devices were sold prior to the regulations, and Ooma will still give the first owner to activate them free service without the regulatory fees.

All of the Ooma Telos or Ooma Hub and Hub/Scout combos have fees. It is only the core which does not.

Ooma Premier

Households that use their phone a lot may want to spend the extra $10 a month ($9.99/month) to use the Ooma Premier service. The Premier service includes additional features such as:

- Instant Second Line: Make or take calls even if someone is already on the phone.

- Three-Way Calling: Conference in relatives and make it a family party!

- Multi-Ring: Ooma can call forward calls to your mobile phone so you never miss any

- Call Screening: Send certain or unrecognized numbers straight to voicemail

- Voicemail Forwarding: Have them sent to your email

Monthly Fees for International Calls

Ooma has a plan that allows up to 1,000 minutes of international talking each month to 60 major countries. That plan is an added $9.99 per month. Additionally, there are some smaller countries not included in that list, and for those you will pay pennies per minute to call them.

The Upfront Costs of Buying an Ooma

The Ooma is going to set you back a little on the initial purchase. I recommend going with the Ooma Telo since it has the most features and is the most-updated version. (Read my Ooma Hub vs. Telo Debate by clicking this link)

The Ooma Telo is going to cost around $150 to buy the initial unit.

Hubs and Cores may cost a little more or a little less (The Core is typically more expensive, thanks to the no-monthly fee policy for the first owners who activate a Core device)

Be aware that Ooma charges around $70 to activate a Used Ooma device. So make sure you are getting a good deal on a Ooma before you buy a used one.

All of the new Ooma devices come with a 1-year warranty.

Can Ooma Introduce a Monthly Fee Later?

Ooma has been really good about sticking by their word. Even when the government regulators made them charge regulatory fees, Ooma still excluded their current users from having to pay these fees for the life of their unit.

So the plan you buy is very likely the plan you will be on. Of course, the regulatory fee amount may change (the government always wants more money) and the Premier service is likely to change prices over time.

Ooma Financial Condition

Will Ooma Always Stick Around?

Since your Ooma device is dependent on Ooma sticking around, a lot of people are concerned about the company's well-being.

Although it is a novel business model, Ooma has already survived 5 years of successful business, and its very likely that it's business model is here to stay. Even with competitors such as Vonage which has a larger advertising budget , Ooma is gaining a large following that will likely keep it in business for years to come.

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    • Melissa Miotke profile image

      Melissa Miotke 4 years ago from Arizona

      Wow this sounds like a really cheap way for phone service!

    • Melissa Miotke profile image

      Melissa Miotke 4 years ago from Arizona

      Wow this sounds like a really cheap way for phone service!