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IT EXPO West - A look at ooma's Telo and future plans
LOS ANGELES - Rich Buchanan, CMO of VoIP device manufacturer ooma, gave me a demo and look at the Telo product the company is launching October 1 to replace its first-generation Hub offering and discussed more upcoming product launches. The Telo has suffered some setbacks, as it debuted at CES in January and originally was slated for a launch in the first half of 2009.
Buchanan said the Telo has a faster processor and will be less expensive to manufacture than the Hub, which means ooma can offer the Telo at $250, the same price as the Hub. He said the company plans on launching a business offering in the first half of 2010, which will be distributed through big box business retailers like Staples and Office Depot. Ooma's business play will be aimed at very small businesses that need four or fewer lines.
Buchanan said the company plans on rolling out Bluetooth and SIP trunking capabilities to the product line, will exceed 100,000 devices sold by the year's end, and is fast approaching profitability. The company is fresh of raising $18 million in June and has racked up quite a cadre of distribution deals, including ones with RadioShack, Best Buy and Costco.
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Comments
"Buchanan said the company plans on rolling out Bluetooth and SIP trunking capabilities to the product line"
Does this mean Bluetooth will be in the Telo at launch or added later? Or maybe were you referring to bluetooth in the business product when it launches?
What are the advantages of SIP trunking capabilities?
Do you have any more details on the business product? Is it Telo-like or an entire new design? Any other features other than 4 lines?
Bluetooth will not be in the 10/1 launch, but likely in the Telo in Q1, according to Buchanan. SIP trunking will be attractive to SMBs when they go after that segment with the business product. Buchanan did not have more details on the business product.
Thanks for reading.
will the launch only be via the OOMA website or do they have plans to make it available in the retail outlets?
How confident are you of this release date? It has been reported previously that the launch was "coming" many times and we are still waiting.
It will be rolled out through ooma's retail channel rather pell mell. Best Buy will, Costco won't, Radio Shack will, but later than Best Buy. Release date has been pushed back before, as the story notes, so it's anyone's guess.
will the first generation ooma support bluetooth?
Rich said the first generation product, the Hub, will be phased out as the Telo is launched.
"Bluetooth will not be in the 10/1 launch, but likely in the Telo in Q1, according to Buchanan."
Unless I misread the comment above, it appears Bluetooth will be added in the second gen Telo around Q1 2010.
Sounds like Ooma is rushing the release of the Telo before the holidays. Who would buy a first gen Telo in October if they find out a model with Bluetooth is just months away?
Thank you for your comments, I was hoping that Pete would respond. It seems possible that the hardware support for bluetooth could be in place while the software is not.
That would be great if they had Bluetooth hardware that could be turned on with a software update. Judging by the rush to market and 2010 target date I'd guess the hardware isn't in place. If it were just turning on dormant hardware it wouldn't take until 2010. Adding a Bluetooth radio to the hardware board would take that long.
No bluetooth until 2010, according to Buchanan. They are trying to get the Telo into stores before the holiday rush.
I think that is a mistake by Ooma. They aren't established enough to burn the customer base by releasing a product early then releasing an update 6 months later with more features.
Up until now Ooma relied on customer experiences to sell products. Early adopters are going to feel slighted when they find out about Bluetooth plans that aren't in the Telo just because Ooma wants holiday sales. A slighted customer base will not be kind online.
Ooma is too small to play the greedy Apple game and come out with happy customers. Those early adopters will be less likely to buy another Ooma product at release. Ooma isn't as big as Apple where the loss of early adopters can be absorbed.
Ooma knows they need bluetooth and has it planned. But they just want the revenue so they are rushing the release.
I'm crossing Ooma off my holiday list. No way will I feel good about paying $250 for a device that has a better one around the corner. A device that can tie into my cell or allow for a headset. It's not as if I would run out to buy a second Telo months later because they added bluetooth so I'll be waiting for the full device as Ooma promised at CES last January.
I have had the ooma system to 10 months now. Just a second while I add up all the times it let me down. Still counting.... Got it, it's ZERO! It is awesome. I can call my bud in germany for .05 a min and talk to anyone in the us for freel. the support is great. I once paid $35+ a month for a land line phone so my pay back was 6.5 months. you are cheeep!!! I have already put $140 in the bank just from the land line savings.
Is the planned bluetooth going to be in the hub, or in the handsets? If it's in the hub, it won't be of much use to anyone unless they are near the hub.
Since the handsets are optional, and I would be using my existing Panasonic DECT handsets, I would not be purchasing the Ooma handset anyway. I could wait until 2010 to get an Ooma handset with bluetooth.
Ooma talked about pairing Telo with cell phones to trade address books and perform other services. My guess would be Bluetooth in the hub to make that happen. The processing power is in the hub not in the handsets.
Bluetooth in the handset would be nice for headset use.
Will there be an upgrade path for those who purchase the bluetoothless Telo and want to trade up to the bluetooth version when it becomes available?
Anyone's guess. Rich Buchanan has stated one of Ooma's revenue streams is through current users buying new products. Ooma is not yet profitable so its unlikely they will cut into those revenue streams by giving discounts to upgraders.
In companies like Ooma most hardware upgrade discounts are for long time hardware owners so the company can keep those customers. Look at TiVo as an example. They don't give upgrade discounts to new customers. There is no reason to give an upgrade discount to a Telo 1 owner when the Telo 2 is dropped a few months later.
I wouldn't think there will be any discount to upgrade hardware. Especially those that just want Bluetooth and bought the Telo a few months too early. If Bluetooth is important the safe bet is not buying Telo 1 until we see what Ooma plans with Telo 2. Ooma will be tight lipped on Telo 2 until early 2010 because they want those holiday sales.
to Posted by Anonymous | September 14, 2009 - 4:22pm
Apparently you have not been using technology long. There is always something better around the corner. If you've been to Best Buy to purchase a PC, you would be 'happy' to know that the PC was outdated 6 months prior.
Just buy the device, the money you save in a year will pay for a new device.
Why would someone buy a device to save on phone bills only to buy a new device when they break even? That defeats the purpose (and the major selling point) of buying an Ooma if someone is going to be replacing it before they see any savings.
It will take me 16 months to break even on the Telo before I start saving on not having a land line. To buy a second Telo after 16 months would make it so I don't see any savings over my current phone for the next two and a half years. We know they have held back on the hardware with an update planned within 4-6 months after release.
I wouldn't buy a laptop without bluetooth knowing an update to correct that is about 4 months away. I wouldn't be happy with an iPod I paid top dollar for just to see a new one released within a month. That's why I don't buy iPods around the 2 times a year when Apple releases new products. For that same reason I will be holding back 4-6 months to see what happens with the Telo hardware.
The only reason the first gen Telo is being released is so Ooma can make money off early adopters during the holiday. The second gen Telo is what Ooma originally planned to release and will be out after the holidays. I guess I have patience to wait a few months for the better version and not the one that is rushed to market so the company can bank a couple dollars.
Is the bluetooth intended to be used for just headsets or something like a cell fusion device from GE? I am not to interested in the headset stuff at the moment, but I might wait till next year to get the hub/base to connect with cell phones.
Cell phone integration is what Ooma pitched at CES last January. Its anyone's guess what that could mean.
Maybe calls could be taken on the Telo handsets that come in on a paired cell phone near the base.
The cell phone address book could pair with the Telo stored addresses and allow a person to dial their entire phonebook from the Telo handset.
Its possible a cell phone paired with the base unit could display incoming SMS messages on the Telo handset. Ooma already plans on allowing premium users to view incoming Google Voice SMS messages on Telo handsets so this is very possible.
The Telo hub is a powerful Linux computer. Pairing Telo with a cell over Bluetooth could give the user more options than they get when pairing it with a high end car. Address books, sending and receiving calls, displaying SMS messages...
I am new to the Ooma concept. Could someone explain to me all the features that will be available by adding bluetooth? I read the sharing of address books with a cell phone...where will that be stored and viewable in the hub? I don't see how sharing of phonebooks will work? What other features? I am trying to decide to wait until Q1 or get the first gen when it comes out. Any advice would be appreciated.
I am a little worried about the future of Ooma, although I am fascinated by the product. If they release the Telo in early October, I will likely buy one. If not, I will be suspicious. Bluetooth will be nice, but the Telo is already many months behind schedule, and I'm not going to hold off for some future promised upgrade--I am already waiting 2 months for the Telo. Personally, I don't believe the "Q1 2010" second gen Telo date. The non-existent no-bluetooth Telo was already supposed to be released in the beginning of 2009.
I think you are right assuming second gen Telo will be released late. Ooma is almost a year behind on releasing the first gen Telo. It's no wonder they needed so many venture capital infusions to stay alive this year.
I'm waiting to hear more about the bluetooth version. The details should be out at CES. The possibility to send and receive cell calls or SMS is too temping. And there is no way I will pay another $250 to upgrade from first gen Telo to a second gen Telo within 2 years of buying the first gen. As another commenter noted, all my savings would be wiped out by upgrading so soon.
Telo is already on display at some Best Buy stores, although not yet advertised on their website.
Its not just on display. At some stores you can buy the Telo now. Official release is Oct 1. You can't port your number or start using the Telo until Thursday even if you buy today.
Its not just on display. At some stores you can buy the Telo now. Official release is Oct 1. You can't port your number or start using the Telo until Thursday even if you buy today.
I can confirm this...I bought my Telo at Best Buy Sunday. Called Ooma customer support and they said it can only be activated when the new website is released this week. The links from the manual are not active yet...so when the new website goes online, I will be able to active the MAC address.
Additionally, I read on Rich Buchanan's Twitter site that the handsets would not be released at the same time. They would be available in November. Does anyone know if they will be available sooner on the Ooma website?
I heard the same about handsets not available until November. Retailers will probably take online orders in Oct for November delivery. You won't get it any earlier through Ooma website. Now that Ooma has retail partners they are focused on getting product on the shelves to please the retailers. Ooma won't mess with that relationship by holding back products for earlier direct sales to customers.



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