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As AT&T Looks to End Landline Phone Service, Ooma Offers Both Consumers and Businesses An Easy and Affordable Path to POTS Replacement

Business Wire 13-Feb-2024 8:00 AM

Ooma, Inc., a smart communications platform for businesses and consumers, is offering both consumers and businesses easy and affordable paths to replacing POTS, or Plain Old Telephone Service, as AT&T and other legacy carriers prepare to shut down their landline infrastructure.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240213853060/en/

As AT&T and other carriers look to end traditional landline phone service, consumers and businesses have options for replacing Plain Old Telephone Service, or POTS. Ooma Telo LTE with Battery Backup, shown here, delivers free phone service (subscribers only pay applicable taxes and fees) and stays connected during power failures for up to eight hours. (Photo: Business Wire)

As AT&T and other carriers look to end traditional landline phone service, consumers and businesses have options for replacing Plain Old Telephone Service, or POTS. Ooma Telo LTE with Battery Backup, shown here, delivers free phone service (subscribers only pay applicable taxes and fees) and stays connected during power failures for up to eight hours. (Photo: Business Wire)

AT&T recently mailed notifications to its landline customers in California informing them of upcoming hearings by the California Public Utilities Commission (CPUC) where the company will present plans to discontinue POTS service in the state.

AT&T said it would guarantee to continue providing POTS service for no more than six months after the request is granted. The Federal Communications Commission already removed price caps on POTS service in 2022, leading in some cases to big increases in monthly rates, and many other state regulators are in the process of allowing a gradual end to landlines.

This presents a dilemma for consumers and businesses who still rely on POTS. Consumers, for example, may live in a location with no cellular signal or may have a home phone number they don't want to lose. Businesses may have safety equipment such as fire-alarm panels, elevator phones, burglar alarms and building entry systems that can't be switched to an internet connection because of regulatory requirements or concerns with reliability.

Ooma has answers for both groups of users.

Ooma Telo (https://www.ooma.com/home-phone-service/) for consumers provides free internet home phone service, with subscribers only paying applicable taxes and fees. The service is designed to address the most common questions for customers switching from a traditional landline:

  • Can I keep my existing home phones? Yes. Ooma Telo is compatible with all standard home phones.
  • Can I still dial 911 in an emergency? Yes. With the E911 service included with Ooma Telo, first responders will see your address registered with Ooma displayed on the screens even if you can't talk. What's more, family members can get automatic alerts whenever 911 is dialed. For example, parents away from home will know if a babysitter makes an emergency call.
  • Will I lose my home phone number? No. Landline customers can transfer, or "port," their existing home phone number to Ooma for a one-time fee of $39.99.
  • Will my home burglar alarm system still work? Yes. Ooma Telo has an Alarm Mode to support most home burglar alarm systems that require an analog phone line.
  • Will my phone work during a power outage? Yes, if you get Ooma Telo LTE with Battery Backup (https://www.ooma.com/home-phone-service/residential-voip-phone-with-lte-internet-service/), which provides a wireless internet connection and a backup battery that will last up to eight hours whenever the power goes out.

The optional Ooma Premier plan at just $9.99 a month (https://www.ooma.com/home-phone-service/premier/) delivers advanced features such as receiving voicemail messages as email attachments, customizable call blocking, a mobile app for answering calls away from home and a virtual second phone line.

Ooma AirDial (https://www.ooma.com/business/airdial-pots-line-replacement/) for business is an all-in-one POTS replacement solution that combines hardware, software, connectivity, virtual POTS lines and remote management with a single monthly bill from one vendor. AirDial's industry leading features include:

  • Wireless connectivity that goes directly to the Ooma cloud without traversing the public internet for higher reliability.
  • Remote management through an online portal for multiple AirDial devices across multiple accounts with a single sign-on for efficient monitoring and control.
  • An option for MultiPath connection, where calls are carried simultaneously on both a wired and broadband connection, allowing for automatic failover if one pathway goes down without the call in progress being disconnected.
  • Professional site audits and installation to smooth the transition away from POTS.

"The inevitable end of landline phone service is understandably worrisome to many consumers and businesses, but there are a range of choices for POTS replacement – including those from Ooma – that can meet their needs," said Thad White, vice president of product management at Ooma. "Once landline users make the switch, we believe they'll be both relieved and happy to discover they're getting more features and more reliability at a lower cost."

About Ooma

Ooma (NYSE:OOMA) creates powerful connected experiences for businesses, consumers and service providers, delivered through smart cloud-based communications platforms and services. For businesses of all sizes, Ooma offers advanced voice and collaboration features including messaging, intelligent virtual receptionists and video meetings. Ooma's all-in-one replacement for analog phone lines helps businesses maintain mission-critical systems by moving connectivity to the cloud. For consumers, Ooma's residential phone service provides PureVoice HD voice quality, advanced features and integration with mobile devices. Learn more at www.ooma.com or www.ooma.ca in Canada.

Forward-Looking Statements

This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements." The forward-looking statements contained in this press release include, without limitation, statements related to the functionality, features and benefits of Ooma AirDial and Ooma Telo. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results to be materially different from any future results expressed or implied by such forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in Ooma's filings with the Securities and Exchange Commission, including under Item 1A, "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2023, filed on April 7, 2023, and in its subsequent reports on Forms 10-Q and 8-K. Investors are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date they are made. Ooma undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

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