David Beckemeyer on Ooma

David Beckemeyer, Televolution CEO, is the one guy I think is in position to evaluate Ooma's business prospects. This is what he says: "As some may know, I have been aware of this effort and provided some early guidance for their project (VERY EARLY - I have not been involved for a LONG time).

They could have launched the idea on top of the PhoneGnome platform and been in market years ago, but they wanted to build hardware - that was a bigger driver than anything else (bigger than whether the business made any sense).

I give their stated vision/business plan no chance at all, for the exact reasons I told Ooma in 2004:

1. solving a problem (call costs) that is going away (already going to zero)

2. people won't open their wallet for a large upfront purchase, as shown by Tivo etc. and especially not for "phone stufff" which is perceived as should be cheap

3. regulatory troubles - like FON, you are asking users to violate their terms of use with their provider

4. privacy/legal/CALEA trouble - do I want to let people I don't know use my phone and get wiretapped using my number plotting their dastardly deeds?

Item 4 above is different than the Skype-like P2P in that with Ooma, you're letting people use a highly-regulated instrument, with a lot of technology and history in wiretapping (vs. my computer and encrypted sessions).

I believe they would still also have a caller-ID problem in that my calls will not be delivered with my number as the calling number, but that of the Ooma box owver who's line is making the call (or the box blocks caller ID on outgoings calls so people I know won't accept my calls because they won't see that it is me calling).

But again, we should not underestimate the impact of a lot of money and backers that probably will not have much patience. Ooma could evolve into something viable.

With the fact that PhoneGnome is now free and needs no software, basically users can get most their calls free with no investment and no hardware at all.