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As mentioned above Ooma also offers a higher level of paid service called Ooma Premier, which costs $9.99 per month and includes extra features that don’t come with the free service. The Telo is required for the service to function and retails for around $100, though it can typically be found on sale for about $60. In order to use the service users must purchase the Ooma Telo VoIP Adapter. Well the answer is quite simple, Ooma makes money on the initial hardware investment from its free customers. How does Ooma make money if most customers choose the free plan? The basic plan is free and sufficient for most, but they offer premium features for a monthly fee.

So one might ask, “What’s the catch?” or “How can a company make money offering service for free?”. Yes, that’s right it comes with no monthly service fees and includes unlimited local and long distance calling to the U.S. With Ooma you’ve got to wonder what’s going on, considering their VoIP service is actually FREE. Anytime something is incredibly cheap our subconscious mind inherently thinks something must be wrong with it. Ultra-cheap unlimited VoIP plans have been the norm in the VoIP industry for years and it understandably makes people skeptical at mentioned above. I mean, do they really still charge extra for caller ID? Constant up-charges for long distance calls and extra features that should now be the standard with the most basic of plans. This is exactly what the traditional landline phone companies want you to think as they continue to take over $70 per month on average from consumers. Many people are skeptical at the notion of ultra-cheap home phone service, thinking it surely must be low quality or a potential scam if it is priced so cheaply.
