The activation fee is about $125.00 and then you only pay the local taxes each month. ooma is a very balky device. Sometimes the connection is anything but clear. At other time the system freezes up and you have to disconnect the cables, power cord etc., and wait for the system to reboot. This has happened about 15 times since I got ooma approx. 6 months ago. So the question is can you put up with the aggravation?