The Magic behind MagicJack free phone calls

By Hum
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Grand Master

Hum

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MagicJack, the USB-based VoIP service from telco vet Dan Borislow, intrigued us from the moment we first read about it in a column by Herb Greenberg. In search of more details, we were finally able to track down Borislow Monday for a brief demo and some inside info, in advance of the product?s ?formal? intro either later this month or early next.

Some quick tidbits: The company?s business plan revolves not so much around the USB gizmo but instead around a robust nationwide network that Borislow says is also a certified CLEC; the company has interconnect agreements with all the larger carriers, meaning it?s not about to be shut down like some other value-cost calling operations; and as part of its initial marketing push, MagicJack plans to give away a free phone number (of which it says it has millions) to the first wave of customers who plop down $29.95 or $39.95, a price that includes a full year of unlimited calling to the U.S., Canada and parts of Europe.

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If we mess up on any details here, we will blame the noisy atmosphere, since our ?interview? took place amidst wayward forklifts and booth-building crews during the exhibit-floor setup day at Spring 2007 VON in San Jose. While it?s possible that we are the willing victims in a measured slow-leak marketing campaign, any operation that claims to have spent two years building a nationwide network of Internet gateways (with 31 session border controllers, a number Borislow is quite proud of), and has spent the exhaustive and expensive time certifying itself as a competitive local exchange carrier isn?t some Web 2.0 play.

The consumer side of MagicJack goes like this: Users will plug the USB end of the ?jack? into their Internet-connected computer, and will plug a phone into the other end of the device. The device then boots a softphone onto the screen (in 28 seconds, in our impromptu test); you then can pick up the phone and start dialing. The MagicJack will cost $39.99 for a jack with a memory chip (for the softphone), or $29.99 for one without memory (you can alternatively download the client and keep it on your PC). Yearly subscriptions thereafter will cost $19.99, Borislow has said.

The business side of MagicJack, as best as we can tell, comes from the subscription plans as well as interconnect fees paid to MagicJack?s CLEC partner company (apparently called YMax Communications Corp.) whenever a MagicJack phone number is called. More details ? such as additional features embedded into the product, like voicemail, conference calling, and a direct-to-Google search link ? will be revealed at the ?official? announcement, whenver that is. (At the current leak rate, Borislow might not have much left to tell, other than ?some big marketing plan? that he kept to himself Monday.)

Borislow, who claims to have provided most of MagicJack?s $17 million in funding from his own pockets, thinks there is a huge market for value-priced VoIP-based telephony, even though others like Vonage and Skype are revenue-challenged right now. ?There?s a lot of people with fixed costs of $700 a year for phone service who may now be able to buy a case of beer a week instead,? Borislow said, putting a thirsty twist on MagicJack?s purported savings. College students or teens who already have laptops and Internet connectivity are also target customers, he said.

On the networking side, Borislow is quick to diagram the MagicJack/YMax advantage, which he says comes from building a network that covers ?80 percent of the U.S. population? with its gateways and SBCs. By connecting most of a call?s distance over the Internet between its own gear, Borislow says MagicJack will have far superior call quality to other VoIP providers (or even PSTN calls routed over IP) , who must traverse multiple equipment types and transports that can introduce latency and degrade calls.

(Look for MagicJack in the SJ Labs booth at VON, since MagicJack acquired the softphone-technology firm as part of its inception.)

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Grand Master

Hum

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I just ordered a MagicJack, plus the 2 year access.

It's a free 1-month trial, before your card is charged.

The actual price is $39.95 plus 6.95 shipping = $46.90.

I'm spending $66.85 [2.79 per month] for 2 years of 'free' long distance -- I hope it's worth it. ;)

Grand Master

LOC Veteran

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I've had a MJ for almost a year now. I love it, in fact I got 3 of my friends to get one also!

I JUST changed my number to a local number actually the other day, a very easy to remember one to boot. Very happy about that. I highly, highly recommend the MagicJack to anyone and everyone I know that has broadband and that lives in the US or Canada and wants awesome quality VoIP/broadband phone service for like hardly any money :D

Grand Master

Panacik

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^ Cool -- I'll give ya a call. :D

And according to the TV ad, anyone not in the USA/Canada, can buy one, and then call our countries for free.

If i payed ?5 more per month in the Uk, for the deal i have, i could call anywhere in the US and most European destinations for free already. I pay ?45 for free evening and weekend calls to UK landlines, Sky 8 meg Broadband and Sky TV, which works great. If i was to pay ?5 more i would get completely free calls all of the time to the UK, US and some European destinations.

Grand Master

Hum

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Wait, so it's pay this nominal fee and call unlimited? Free calls?

Is it only free calls to other people who have MJ? So it's like Skype?

Damn, so many questions. ;)

Details at the web site:

http://www.magicjack.com/

The one question I have, what about incoming calls ?

Is it 'free' for people calling you ? Or do they need MagicJack too ? :unsure:

Video says you can receive, but ...

Mentor

Twisted Chaz

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Do you have to be at your computer when you do it, or be hooked up to the net?

I don't get this things, cause they are all just glorified chat programs. Ventrilo is free for an 8man server, Team-Speak, WLM Voice Chat, Skype . . .

Why do I have to pay for it, when I do it for free all the time

If I'm offtrack, please place me on the rails.

Grand Master

LOC Veteran

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^ Cool -- I'll give ya a call. :D

And according to the TV ad, anyone not in the USA/Canada, can buy one, and then call our countries for free.

I dunno Hum, that's a scary thought! :D

Wait, so it's pay this nominal fee and call unlimited? Free calls?

Is it only free calls to other people who have MJ? So it's like Skype?

Damn, so many questions. ;)

You can call ANYONE, ANYWHERE in the US or Canada for free, totally unlimited with MagicJack. Just plug it into a USB port, activate it and away you go. You can either use the softphone they have on the PC itself to make calls (using a good headset mind you) or you can hook up any landline phone to the MJ and use it like a regular phone device.

Details at the web site:

http://www.magicjack.com/

The one question I have, what about incoming calls ?

Is it 'free' for people calling you ? Or do they need MagicJack too ? :unsure:

Video says you can receive, but ...

No, people who call you pay whatever they normally pay for making a call. If it's another MJ user then yes it would be a free call, but then again any call made with MJ is technically "free" as it were.

Do you have to be at your computer when you do it, or be hooked up to the net?

I don't get this things, cause they are all just glorified chat programs. Ventrilo is free for an 8man server, Team-Speak, WLM Voice Chat, Skype . . .

Why do I have to pay for it, when I do it for free all the time

If I'm offtrack, please place me on the rails.

No you don't need to be at the PC all the time, but it does have to be hooked up to the net and be on all the time if you want to make or receive calls. This is NOT a glorified chat program like Skype or Ventrilo. It's a real VoIP system.

If the MJ is hooked up to a normal phone, then you can walk around your house as you normally do and use the phone whenever you want. It's a bit different than say a Vent server or Skype. While Skype can allow you to call a regular phone, the quality leaves something to be desired normally (alot actually). MJ is perfect quality voice, I'd say better than normal phone service lines actually. Though sometimes the audio can be a tad low, but that's probably due to my headset on my PC more than anything.

Grand Master

Blue-Vision

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I've had one for a month now.

It's working great, aside from when I ran it off my USB Hub (it would restart on occasion or drop calls, so don't run it off a hub unless you have to!). Plugged it into my computer's USB and it's been happy as a clam. The call quality is great, and I'm pretty happy with it now.

Anyone who's thinking about getting one -- do it. It's worth the money.

Grand Master

DirtyLarry Veteran

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Question...

Does it work with a Mac?

OK, another Question...

Does it hook up to USB because of Software on the PC, or just because it needs USB to be powered?

If it is just because of the power, in theory would it work if plugged into the USB port of a PS3??

Grand Master

Blue-Vision

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Does it work with a Mac?

Yep. It works on Intel Macs.

Does it hook up to USB because of Software on the PC, or just because it needs USB to be powered?

It has its' own software that it loads each time. No need to install anything. As for USB, that's HOW it works. Plug it in and go.

Grand Master

DirtyLarry Veteran

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Yep. It works on Intel Macs.

It has its' own software that it loads each time. No need to install anything. As for USB, that's HOW it works. Plug it in and go.

Kick ass, and more Kick ass.

Thanks for the responses.

Hum, where did you order the one with the two year contract? Straight from the website itself?

Grand Master

Doli

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What about Australia :-(

Only US and Canada.

Im guessing that if you have a buddy(s) in the US or Canada that you call a lot can they get a MagicJack for you and send it to you and you can save on calls to the two countries as long as you pay them since its in their name and billed to them. Just thinking in the air....

Grand Master

DELTETHISACCOUNT

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So after you purchase it and set it up, will it give assign you a phone number or what?

Do I have to keep a program running on my computer in order for it to work? Does the adapter work like a U3 device?

Does it use up a lot of bandwith? I don't exactly have the fastest connection around...

EDIT: Found the answer to the bandwith question, 80kbps. :)

Edited by Ruiz
Grand Master

SkyyPunk Veteran

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Didn't read the full article...we played with one of these at CES this year

When we talked to 'the creator', he said what they *hope* will drive most of the money is it being ad based use on the computer, but you dont *have* to use the computer side client, and I think most people won't either :p But he did stress their whole network they created to support this, which helped lower their costs since they traveled on their network most of the time, instead of always over other companies lines which they would have to pay a fee for

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Grand Master

Hum

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Kick ass, and more Kick ass.

Thanks for the responses.

Hum, where did you order the one with the two year contract? Straight from the website itself?

When you go to check out at the website, and enter your ordering info/card, it will offer you a bunch of options.

It started to confuse me a bit. :blink:

I opted to pay for 2nd year, for $19.95.

The e-mail I got from MagicJack called this a 'Gold Plan'.

Grand Master

SkyyPunk Veteran

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sounds like a really neat idea.

you get yourself a laptop with broadband, then you got a nice little cell phone. interesting

:rofl: Bring a laptop with a wireless card, plug in a normal home phone into magic jack, sit at a table and talk on it :D People would probably get a laugh <.<

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