Thursday, July 19, 2007

Ooma, PhoneGnome

Ooma hopes it can make a business in the independent VoIP space without slugging it out with incumbents, cable companies, Vonage, Packet8 and others. Ooma uses peer-to-peer technology, it reminds me of nothing so much as PhoneGnome. A user can rely on broadband and Ooma, "cutting the cord," or can keep legacy POTS and integrate Ooma with a traditional landline (the easiest way to keep 911 service). All calls within the U.S. market are free, and off-network calls are billed at Skype-like rates.

Like PhoneGnome, the revenue model is "selling boxes," not recurring revenues from services. Ooma is betting that a $400 purchase of a base hub that functions like an analog terminal adapter will appeal more than a VoIP service account. Additional Ooma adapters can be bought to add service to other analog phones on other standard wall jacks.

Perhaps the longest-lasting impact, irrespective of what happens with Ooma, is the P2P approach it uses to create a network. As with all P2P networks, each end user's client becomes a node on the network to help terminate traffic. I don't know what technology platform Ooma uses. It seems logical that Session Initiation Protocol is not what Ooma is doing on the P2P side of its platform, but it seems SIP has to be there someplace for interface to the public network at some level. But David Beckemeyer seems best placed to noodle on that.

Alec Saunders (Iotum)asks an interesting question, however. Ooma says it will try to use member POTS access to essentially avoid paying termination charges. Presumably that means invoking user phone numbers in some way. If caller ID information cannot be spoofed from the POTS phone, but only from the trunk side of the network, does that mean a user's caller ID gets delivered even when it is just a transit node between a calling party and the called party? Details are scanty at this point so I'm not sure anybody outside Oomba knows the answer.

Or maybe there isn't even a problem. Presumably Ooma would try to "terminate" a call at a local Ooma "node" and then use the Ooma P2P to retransmit the bits using the public Internet to the terminating Ooma node with no need to deliver calling number ID information.

One wonders how much longer it will be until even Tier One service providers start to take a closer look at integrating P2P in some significant way with the existing public networks, especially as those networks are upgraded for IP Multimedia Subsystem and there's more broadband in the access network.

Not P2P as an "over the top" end user application. P2P as a part of the architecture of a managed network that simply uses multiple techniques to reach deeper into the environment sitting on the other side of the traditional "network termination" point. Making customers part of the network is starting to look like good business sense.

1 comment:

Anonymous said...

Minor correction Gary. PhoneGnome's business model is value-added services revenue, so there is an ARPU aspect to the business. The box is really a loss leader. Our ARPU numbers, even with the small number of services we have available so far, are already many times that of Skype's reported numbers. We offer our own internally developed services as well as partner-developed applications (like iotum) under revenue sharing arrangements.

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