The company _ backed by $27 million in venture capital _ eventually hopes to crack the home-based and small-business niches. Engineers are working on a system that forwards calls to cellular phones.

"It's nothing like anything a carrier can do currently," CEO Andrew Frame said. "Once you own the box, you don't have to pay ooma anything in the future."

Frame and other executives assume, of course, that their company won't meet the same fate as other startups going up against telecommunication veterans.

Earlier this week, Internet phone carrier SunRocket Inc. abruptly shut down, leaving more than 200,000 customers scrambling for alternate service. The No. 2 standalone Internet phone company after Vonage Holdings Corp. attracted customers with cheap plans and innovative features, but traditional phone and cable companies also lowered prices and started bundling their services.

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