PhoneGnome answers ooma's call
Over the summer, a little gizmo dubbed "ooma" was rolled out and promised free VoIP services for the price of the hardware. Industry experts said it resembled a previously introduced product known as "PhoneGnome."
FierceVoIP last week asked ooma founder Andrew Frame how his company's free VoIP device compared to PhoneGnome (Sept. 4, "ooma chief talks with FierceVoIP"). This week, PhoneGnome founder (and co-founder of EarthLink), David Beckemeyer, responds.
FierceVoIP: Tell us a bit about your company….
David Beckemeyer: I founded TelEvolution in 2004 with the mission of removing the barriers holding VoIP migration back. The PhoneGnome global service is our flagship product that lets anyone with a telephone number and Internet service quickly augment their phone experience with next-generation Internet telephony capabilities. It's VoIP for the rest of us.
FierceVoIP: Where is it located and how many folks work there?
DB: The headquarters are located in Danville, Calif., in the San Francisco Bay Area. We are a typical early stage startup, running very lean and mean. We don't have any Hollywood actors and we don't have a big pile of VC cash to burn. We have less than 10 people working full time, and many, many, terrific folks who work with us, outsourced and under other arrangements to allow us to operate without large capital requirements as we strive to expand and grow organically.
FierceVoIP: Is it privately held, and whom, if any, are the investors?
DB: We are privately held, and many of our investors prefer to remain behind the scenes; however one of our most active investors is Bob Packer, founder of Packeteer.
FierceVoIP: What is PhoneGnome and how does it work?
DB: PhoneGnome is a service attempting to bring VoIP to the mass market. Our objective is to make sophisticated and powerful open standards-based VoIP capabilities available to, and usable by, mainstream consumers.
Beyond that, PhoneGnome is also a VoIP service platform that can be controlled via web APIs. Our telephony web services makes it practical to deliver new Voice 2.0 to traditional, VoIP, or cable phone subscribers worldwide with rapid time to market and low capex, pay-as-you grow economics.
FierceVoIP: Is it more oriented toward tech savvy users who understand how to make a phone call using a SIP address?
DB: In the early days of consumer Internet, there was a choice between user friendly, but closed (AOL, for example), or open, but very difficult to use for regular users. In my days at EarthLink in the mid-1990s, our mission was to bring the advantages of the real open, interoperable Internet to mainstream users, making it as easy as AOL, without forcing proprietary, closed systems upon people.
At TelEvolution, we are trying to do the same thing with PhoneGnome and VoIP. The idea is that PhoneGnome is easy enough for anyone to use, while providing open, standards-based, interoperable, real VoIP at the same time. Users just dial real phone numbers and don't have to download software, learn new handles, nicknames, or new numbers.
At the same time, PhoneGnome does give the sophisticated user the capability of placing a call to a SIP address, for example, but the average user doesn't even need to know that capability exists to use the service.
FierceVoIP: When ooma rolled out, some compared it to PhoneGnome. Last week, we asked ooma chief Andrew Frame to tell his device differed from yours. It's your turn. How does the PhoneGnome stack up against the ooma?
DB: There are some things about the ooma product that we think are good ideas. That's why we introduced them in our PhoneGnome box in 2005--automatic 911 and power-outage cutover, more intelligent voicemail with web and email integration, and consumer-friendly set-up.
We introduced the first completely plug-and-play VoIP device that would automatically configure itself and let users dial regular phone numbers to make free and cheap calls. Users could even make free calls without ever signing up for any service, simply by plugging in the PhoneGnome box.
The key distinguishing aspects of the two products, as we see it, are:
Ooma:
- Prepay for hardware plus a bundle of services/features up front
- Service options defined by ooma
- Proprietary, closed, architecture
- Available to users in the United States
- International calls at ooma rates
PhoneGnome:
- A la carte model, with lower up-front costs
- Customers pay less up front and pay for the services/features they want
- Open, expandable and interconnects with other VoIP services/systems
- Embraces open-standards, interoperability, and industry standards
- Available to users anywhere in the world
- Free software extends PhoneGnome-enabled service to a PC or mobile phone
- PhoneGnome box works with VoIP, cable and landline phone service
- Compatible with a variety of international and domestic plans
FierceVoIP: (Regarding Andrew Frame's discription of PhoneGnome as a "resold Cisco ATA device, not true plug-and-play, no control of the software.")
DB: The existing PhoneGnome box is a customized version of a hardware platform produced by Linksys/Cisco. We see this as an advantage. We have no intention of becoming a premiere hardware manufacturer.
PhoneGnome is fully self-configuring. A buyer can plug in the PhoneGnome box and it will automatically set itself up and be ready to make and receive free calls in a few minutes, just by dialing ordinary phone numbers.
PhoneGnome is fully managed and receives updates and bug-fixes totally automatically and transparently to the user.
FierceVoIP: Does it allow for free domestic VoIP calls to any type of phone?
DB: PhoneGnome includes free calls to everyone with a PhoneGnome box; everyone with a free PhoneGnome account around the world; users on compatible VoIP services, including Gizmoproject, FWD, Earthlink, and many more; IM users on Gtalk, Yahoo!, and MSN; and millions of numbers reachable free through our extensive peering relationships; and software for free calls to Skype users.
FierceVoIP: Does it require a landline?
DB: The PhoneGnome box is for augmenting an existing telephone service with VoIP.
FierceVoIP: How are 911 fees handled?
DB: Since the PhoneGnome service augments an existing service, it automatically works with the 911 service provided by that existing phone service and there are no additional fees - and this applies to emergency services outside the U.S. as well (112, 999, etc.)
FierceVoIP: What do I get from PhoneGnome for $99?
DB: The PhoneGnome service can be used free without the box. The $99 PhoneGnome box augments an existing fixed line service with new capabilities, the three main ones being free calls, cheap calls and cool features, [e.g., voicemail, voice-to-email; call logs; audio files; Skype software, and more.]
FierceVoIP: How many PhoneGnome hardware users are there?
DB: We don't disclose actual sales figures, but the hardware went into beta in 2004 and is in use in over 40 countries worldwide today.
FierceVoIP: How many PhoneGnome software users are there?
DB:We again don't disclose this number, but it is currently growing at 400 percent annually and we are serving customers in over 100 countries worldwide.
FierceVoIP: What handsets are compatible with the PhoneGnome mobile plug-in?
DB: We don't maintain a list because it is just too long. It is a Java app (J2ME MIDP 2.0) and so it should work on just about any phone sold today. However, a data sevice of some kind is required. The application isn't needed to use PhoneGnome service on a mobile, but it provides some cool features and makes some functions more convenient.
FierceVoIP: What, if any, are the future developmental plans for PhoneGnome?
DB: A great deal of marketing dollars have been thrown at VoIP and a lot of investor value has been lost as a result. We have not seen wisdom in spending vast amounts of money to try and rise above that noise. That makes PhoneGnome one of the best kept secrets of the industry.
We have revenue and extremely low customer acquisition costs, meaning that new customers actually add value to the company, rather than take value away.
We've been quietly building a platform and peer technology that is now in use in over 100 countries. ooma coming on the scene has been a blessing for us, helping to raise awareness of our achievements.
Comments (10) | Post a comment Rate it:
Comments
By Keith Stewart | Posted 11:41am | September 10, 2007
Hi,
What I'd like to add is probably not that relevant, but as an overseas visitor wishing to purchase PhoneGnome I was very impressed when David answered the telephone himself on a Saturday afternoon and on Monday afternoon, despite being on the East Coast I received PhoneGnome, plus was able to clear up a couple of items before leaving on the Wednesday. Thats what I call service!
Regards
By Steve M | Posted 12:02pm | September 10, 2007
Phonegnome plug-n-play? Don't think so. This is a blatant misrepresentation. I bought one at Staples and could never get it working. When I took it back the rep claimed that many people return these gizmos because they can't get them working.
By Andy Abramson | Posted 1:24pm | September 10, 2007
Steve M-
Did you ever call the folks at TelEvolution? As their PR agency we found them to be very responsive and as Keith above reports quick to solve problems.
As a PhoneGnome user David and his team have answered every call, email and IM...Granted I'm biased, but those that know David and his work ethic would likely differ.
Out of curiosity, which Staples store did you purchase your PhoneGnome in?
By Peter W. | Posted 1:36pm | September 10, 2007
I happen to be lucky enough to have ooma installed in my house. prior to ooma there was a period of a few months earlier this year where i did have phonegnome installed. so i feel i can comment acurately on this article from a customer perspective:
first on phonegnome: i did get it to work and it did save me a little bit per month of my phone bills (i saved $5-10/month). But the installaltion was next to impossible and not for the faint of heart. in fact i never could do it myself after many attempts. instead my neighbor who works in the IT department of a large corporation had to figure it out and it even took him all weekend. the functionality/features is very hard to figure out and get to work. for me, it ended up having the same use case as vonage - connected to one phone in my home office - and i never got any of the other features to work in a reliable fashion. in fact before i even knew of ooma i had already removed phonegnome because we found vonage has better voice quality.
on the flip side in regards to ooma:
first of all let me say that i know a couple other people who have ooma and beyond owners of the iPhone i have never heard people rave and brag so much about a tech product before. in regards to the actual ooma product: i got ooma installed in about ten minutes. it literally was as simple as plugging in 3 cables and sitting back and watching it run through its self-configuration and in about 60 seconds the light on the ooma tab turns blue and its working. furthermore, i have ooma as a whole-house set-up. meaning it works on every phone in my house. so my wife and kids can use the phone the same time as i do and we each have our own virtual phone lines. its completely seamless - almost magical. also the voice clarity through ooma is pretty amazing. you have to hear it to believe. its like seeing HD on your flat screen TV for the first time. finally, with this set-up of ooma in my house - we are saving now substantial amounts of money. approximately $50-$55/month. (we canceled one of our two AT&T lines and we have no more LD charges and we also reduced the amount of minutes we buy on our cell phones since we now find ourselves using our home phone much more).
so the difference as a customer is night and day.
By David Webb | Posted 1:57pm | September 10, 2007
it seems that we are comparing apples and oranges here. like when the tivo came out people said it was no different than the vcr. same thing with these two products it seems.
By David Beckemeyer | Posted 3:54pm | September 10, 2007
I essentially agree that the two products are different. There are similarities too. PhoneGnome can be used in a scenario to solve the same problems that ooma solves, but that's not the only applciation of PhoneGnome. It can be used to solve other problem scenarios. One thing that bothers people familiar with PhoneGnome is when ooma is given credit for things that PhoneGnome introduced a couple of years ago.
One way to think about this difference, and to elaborate on the (edited) response to the "does it require a landline" question in the interview, is highlighted by the fact that the PhoneGnome box could be plugged into the Ooma box to enhance (or augment) the ooma service with additional features and capabilities, whereas the reverse doesn't apply to the ooma box. A PhoneGnome box would augment the user of ooma service with new features like (1) softphone (use your ooma account on your PC at Starbucks); (2) use ooma service on your mobile phone; (3) use an alternative VoIP provider for international calls to get cheaper rates (or even free); (4) use your Ooma service from alternative locations (say outside the US to make free calls to anyone on the US, or on a wi-fi phone from a hotspot). And so on. The PhoneGnome box can be connected to a VoIP service (like Vonage) or a cable digital phone service to augment such a service in the same way. So it can be connected to any kind of analog (POTS) fixed phone service, whether a real landline, VOIP, or Cable, or as mentioned above, even the output of the Ooma box (whether or not there is a real landline behind the Ooma box).
By Ed Guy | Posted 5:26pm | September 10, 2007
PhoneGnome is very simple to install and use as well as being cost effective. I installed Phonegnome for my in-laws. The most difficult part of the install was finding a spare power outlet. Registration was a snap! Now, they don't know (or care) how their calls are delivered -- they just use their 'regular' phone and it winds up costing less.
By F. Garcia | Posted 6:44pm | September 11, 2007
As a user of Phonegnome for over two years now I can truly say it's an amazing product. In the early stages of Phonegnome some of my ideas were taken into consideration for implementation such as the Click to dial delay and the **466 call home features. The best thing about Phonegnome is that it was designed with the end user in mind and you can see that by its growing list of great features throughout the years. My personal favorite feature is softgnome and how it can be implemented with many devices through the SIP open standard. I currently have Phonegnome installed at home and I'm also running softgnome simultanously on fring and the voip sip stack on my nokia n80.
By Anonymous | Posted 8:42am | November 4, 2007
We bought 5 boxes from Phonegnome and only 2 work. When we contacted them back at first there was no reply from the customer service department and later we get a rude email stating we would have to buy new ones if these are not working. We wrote back again saying we would like to talk to a customer service agent and the reply was " No
additional response will be provided in any form, email, phone,
or in writing.". I have no idea how they are even in business with such a pathetic product and the worst customer service I have come across. I would encourage people to not buy this product as it is a complete waste of money.
By DaveW | Posted 8:15pm | November 7, 2007
I'm with F. Garcia on this.
Instead of making a comparison, here is a list of differences between the ooma and PhoneGnome products
Domestic US calls
ooma - included in $399 price
PhoneGnome - Free to PhoneGnome members (with or without box). $300 to apply to worldwide calls. That's a lot of calls. Use a PhoneGnome plan or some third-party SIP provider of your choice (use Voipbuster, or SIPdiscount etc. and get free calls to more than just the US)
International Non-US Calls
ooma - additional A-Z per minute cost, locked to the ooma plan
PhoneGnome - Free calls includes members in many countries. Use PhoneGnome plans, or the SIP provider of your choice if not free. Even use Skypeout if you want.
Located outside the US
ooma - only available in US (and Canada?)
PhoneGnome - any country/any number
Call logs
ooma - none
PhoneGnome - call logs (includes PSTN/POTS calls) available on-line for missed, placed, and answered calls and can be downloaded to Excel
Click-to-dial (web)
ooma - None
PhoneGnome - web contacts. Number entry on web. Widget available to make all phone numbers on all websites clickable. Google gadget dialer for Google home page. Mobile phone versions too.
SIP Support
ooma - none
PhoneGnome - Call to SIP addresses. Receive calls from SIP. Use SIP providers for calls. Works with Asterisk.
Softphone
ooma - None
PhoneGnome - free PC softphone and open SIP credentials to use any SIP hardware or software to make calls and even answer calls on your PC. Place a call using your PC from a hotspot where the call is sent using your home landline as though you were at home if you wish.
Missed Call Notification
ooma - no
PhoneGnome - receive an SMS text message with call details when you miss a call
Find-me/Follow-me (multi-ring)
ooma - no
PhoneGnome - Available. Ring many phones at the same time, with a sequential "back up" number. Ring softphone and real phones at the same time, ring SIP addresses
Voicemail
ooma - included. Listen on web, phone, or "answering machine" button
PhoneGnome - Free voicemail to email. optional "premium" version available (don't pay if you don't need it or if you want to keep using the voicemail/answering machine you have now). $20/yr and has more features than ooma, including receiving messages via email, SMS/pager notification, and Visual Voicemail on your cell phone - enables cell phone/home phone voicemail consolidation
Second Line
ooma - works (scout is $40 per phone jack)
PhoneGnome - partial. Use call-forward-busy (same as ooma) for inbound and softphone/ATA for outbound to get similar capability
Virtual Numbers
ooma - None
PhoneGnome - Free numbers available from several sources that work with PhoneGnome (because of SIP). Buy local numbers from PhoneGnome to have additional numbers where people can call you, even in foreign countries.
Prices vary by location - US numbers around $3/mo
Mobile Phone Support
ooma - None
PhoneGnome - Web/WAP version and installable phone plug-in (app) version. Visual Voicemail. Place a call from your call phone using your home service - international calls using free local airtime.
Hop-on/Hop-off
ooma - None
PhoneGnome - Available. Dial number of one PhoneGnome box, get second dial tone and place a call using the local phone service attached to that box. "Directed Calling" feature simplifies to a simple ** prefix method for routing calls via remote PhoneGnomes
Peering/Interop
ooma - PSTN calls
PhoneGnome - Gizmo, FWD, SIPBroker, ENUM, ITAD, SIP, voipuser.org, Truphone, SIPphone, and others all free, anywhere in the world.
Instant Messaging Interop
ooma - no
PhoneGnome - Free Voice calls supported between PhoneGnome and Gtalk, MSN, and Yahoo! users
Third-party Applications
ooma - none
PhoneGnome - Open APIs. User-Contributed Library of applications and mashups. Tellme "Dial Tone 2.0" voice dialing. iotum call screening/automated attendant. Website badges and widgets. etc.
I could add to this list for hours. These are not trivial little bits. If you really want a smart home phone, it has to be smart enough to know that it will not do everything out of the box and some things should be left to outside programmers to develop. The ooma feature set is not even a bad joke compared to the PhoneGnome. Most PhoneGnome users will not even respond to such a comparison because they know it's no contest and it requires quite a bit of effort to accurately list the PhoneGnome's capabilities.