A Silicon Valley startup will begin selling $399 gadgets in the United States that consumers with broadband Internet service can use to make unlimited free domestic phone calls. Backed by US$27 million in venture capital, Ooma Inc. has distributed 1,500 beta units, which have handled 325,000 calls. The system works like to 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. Users plug a white machine smaller than a macaroni-and-cheese box between their home's broadband connection and a primary telephone. They can connect a secondary phone using an Ooma "Scout," to cost US$39 each. The system relies on a patent-pending software code.
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