August 8, 2008

MagicJack - Unlimited Phone Service for $20/Yr

Perhaps you've seen the television commercial, promising a 30-day 100% free trial of MagicJack if you call within the next thirty minutes? (The same offer is available at their website.) Is it too good to be true?
First, what is MagicJack?

MagicJack is a gizmo that plugs into your computer's USB port. After you install the hardware, its software automatically loads onto your PC (Mac-friendly versions available, too). Then, you plug your landline phone jack into the gizmo, and voila! You can telephone nationally or internationally at the rate MagicJack charges, not your local phone service.
And the MagicJack rate is very low.

What's the cost?

First year, $39.95; after that, subscription is $19.95/year for caller id; voice mail; call waiting; conference calling; unlimited domestic and international use. These are ANNUAL fees, not monthly ones.
What are the biggest pros and cons? There's lots of negatives to MagicJack.
  1. First of all, your computer has to be up and running to use MagicJack. Turn off your computer, and your MagicJack phone shuts off, too. (Compare this to Vonage, which connects into your modem, allowing you to have phone service as long as your internet service provider is active.)
  2. Another negative for some is the MagicJack requirement to dial the area code for every call - although this is only true for some parts of the country.
  3. A third problem with MagicJack is quality of transmission - in my surfing of the web, I found bloggers and pro reviewers reporting periodic fuzzy calls, low volume, and voice mail issues. Everyone weighed these against the cost of the service, and found the quality issues tolerable given the cost benefits MagicJack offers.
  4. Finally, there's a privacy issue. Selling this service this cheap has many wondering how MagicJack can make a profit. Well, the company plans on getting revenue through advertising, and that's going to happen through ads that MagicJack will sell, and which will be displayed on your computer as part of the MagicJack operational software. The gimmick to draw advertisers? MagicJack reserves the right to monitor the numbers you dial so it can coordinate ads with advertisers. Yep -- they'll be monitoring your phone calls for commercial purposes and you're giving up some privacy in order to get cheap phone service.
What are the Pros?
  1. It's easy to install.
  2. It's cheap.
  3. You can call domestic or international for the flat fee.
  4. It seems to have the best use as a landline used for families whose main phone use is at work, or on cell phones. Lots of the complaints I read were from folk who were trying to use MagicJack for business, or for their sole phone line.

Who are its competitors?

MagicJack is one of several voice-over-internet-protocols (VoIP) services being marketed today for cheap phone service. Others include Vonage (which is the big dog in the pack here), Optimum Voice, At&T CallVantage, TimeWarnerCable, Comcast, Average, and Skype. All these services compete with MagicJack for VoIP customers.
Who's winning? In a recent PCMag survey, Optimum Voice came in first as the VoIP customer favorite, followed by Vonage.

Reviews:



For more information:

8 comments:

Anonymous said...

The biggest problem anyone seems to talk about on magicJack is the lack of customer service or the ability to speak with someone. I bought mine from www.go-fast-parts.com and couldn't be happier. They have an excellent customer service staff who will take the time to make sure your product works and they had the lowest price. Can't say enough about these guys!
Loflyn

Rebecca said...

Thanks for the info, Anon. I'm thinking about trying out MagicJack and your info about getting it thru GoFastParts.Com is a great help!

Anonymous said...

They advertise the magicjack as unlimited use, that is not true, they will disconnect it after 3 months if they think you are using it too much and ask you to pay more money to keep it working. Check the Florida BBB before you buy this product.

Rebecca said...

Thanks Anon for taking the time to provide this important information. I cannot imagine a company disconnecting service because their product/service was being used too much! That's wacky.

Personally, I decided against MagicJack because I would lose my phone number - but this info you've provided is a big negative, too. Thanks again for writing.

Armil@local phone company said...

I think this is new to me. I would like to avail this one. Thank you for some information.

Anonymous said...

MagicJack disconnected service for "excessive" use. When asked what constitutes as excessive use, was told 20 times more than the average user. Ok so I asked what is the average amount of time used by consumers.... and wha laa no answer. If they cannot give a definitive answer to a direct question,then whats the use.. And unlimited is not unlimited... Not happy!

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