A Silicon Valley start-up intends to begin selling $399 gadgets today that consumers with high-speed Internet service can use to make unlimited free domestic phone calls.
Backed by $27 million in venture capital, Ooma has distributed 1,500 beta units, which have handled 325,000 calls. The system works like peer-to-peer and distributed computing through both cable and DSL lines.
While traditional phone switches connect a local toll call or a long-distance call through the public switched telephone network, Ooma uses the Internet to connect the long-distance portion of calls for free.