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Old 01-09-2010, 11:00 AM   #1
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the new Magic Jack might actually be worth buying

MagicJack’s Making Cell Phone Fees Disappear

the old one was just VOIP for idiots, but this is really kind of cool. free cell calls when you're in range of your magic jack.

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MagicJack's new version of the device allows free calls from cellphones in the home and cellular carriers are not happy about it.

The company behind the magicJack, the cheap Internet phone gadget that’s been heavily promoted on TV, has made a new version of the device that allows free calls from cell phones in the home, in a fashion that’s sure to draw protest from cellular carriers.

The new magicJack uses, without permission, radio frequencies for which cellular carriers have paid billions of dollars for exclusive licenses.

YMax Corp., which is based in Palm Beach, Fla., said this week at the International Consumers Electronics Show that it plans to start selling the device in about four months for $40, the same price as the original magicJack. As before, it will provide free calls to the U.S. and Canada for one year.

The device is, in essence, a very small cellular tower for the home.

The size of a deck of cards, it plugs into a PC, which needs a broadband Internet connection. The device then detects when a compatible cell phone comes within 8 feet, and places a call to it. The user enters a short code on the phone. The phone is then linked to the magicJack, and as long as it’s within range (YMax said it will cover a 3,000-square-foot home) magicJack routes the call itself, over the Internet, rather than going through the carrier’s cellular tower. No minutes are subtracted from the user’s account with the carrier. Any extra fees for international calls are subtracted from the user’s account with magicJack, not the carrier.

According to YMax CEO Dan Borislow, the device will connect to any phone that uses the GSM standard, which in the U.S. includes phones from AT&T Inc. and T-Mobile USA. At a demonstration at CES, a visitor’s phone with a T-Mobile account successfully placed and received calls through the magicJack. Most phones from Verizon Wireless and Sprint Nextel Corp. won’t connect to the device.

Borislow said the device is legal because wireless spectrum licenses don’t extend into the home.

AT&T, T-Mobile and the Federal Communications Commission had no immediate comment on whether they believe the device is legal, but said they were looking into the issue. CTIA — The Wireless Association, a trade group, said it was declining comment for now. None of them had heard of YMax’s plans.

Borislow said YMax has sold 5 million magicJacks for landline phones in the last two years, and that roughly 3 million are in active use. That would give YMax a bigger customer base than Internet phone pioneer Vonage Holdings Corp., which has been selling service for $25 per month for the better part of a decade. Privately held YMax had revenue of $110 million last year, it says.

U.S. carriers have been selling and experimenting with devices that act similarly to the wireless magicJack. They’re called “femtocells.” Like the magicJack, they use the carrier’s licensed spectrum to connect to a phone, then route the calls over a home broadband connection. They improve coverage inside the home and offload capacity from the carrier’s towers.

But femtocells are complex products, because they’re designed to mesh with the carrier’s external network. They cost the carriers more than $200, though some sell them cheaper, recouping the cost through added service fees. YMax’s magicJack is a much smaller, simpler design.
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Old 01-09-2010, 11:13 AM   #2
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They are starting to debate over wether this is illegal or not, so I would get it while you can.

But I really dont see a use for this. I don't use my house phone ever, and when I use my cell phone, I'm nowhere near a computer...how does this replace a cell phone
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Old 01-09-2010, 11:19 AM   #3
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Originally Posted by DataXUnknown View Post
They are starting to debate over wether this is illegal or not, so I would get it while you can.

But I really dont see a use for this. I don't use my house phone ever, and when I use my cell phone, I'm nowhere near a computer...how does this replace a cell phone
it doesn't replace a cell phone, but it saves your minutes when you're using your cellphone at home. there is no landline in my house because we just use cell phones, and the thing apparently has a 1500 foot range or so, so i could use this anywhere on my property, which would be pretty useful

of course if you have an unlimited calling plan then this won't matter to you.
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Old 01-09-2010, 11:47 AM   #4
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Seems like this wil be outlawed really soon.
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Old 01-09-2010, 02:02 PM   #5
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I hope it isn't. AT&T is draggin their ass on femtocells and then wanting to charge me $20/month to fix their weak network in my house. I'd just magic jack it for like $2/month. Problem solved.
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Old 01-09-2010, 03:40 PM   #6
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If you make most of your calls at home or work, this would be great.
At the very least you could probably get a cheaper calling plan on your cell.
Just depends on how you use your cellphone.

To me, it would be worthless.
I text a lot & don't call much.
When I do call, it's when I'm out.
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Old 01-09-2010, 03:43 PM   #7
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It's funny.

A guy got caught doing this same thing, and because he was a kid, he got minimal prison time and ended up working for the government.
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Old 01-09-2010, 03:45 PM   #8
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we have tmobile cell phones, so we got the hotspots @ home thing where is Voip with their special router and sim card.. so we dont need to leave the computer on all the time.. Its kinda cool besides teh fact taht your phone needs to be hooked up to the router, so your limited on where you can place the phone and how many phones you can hook up to it.. but calling anywhere is pretty cool.
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Old 01-09-2010, 04:44 PM   #9
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I have the magic jack, bought it for my mom (living in the philippines)...she has it registered with a 702 area code, Las Vegas, NV...she calls me whenever she wants. it paid its self off after 1 week. LOL. Way cheaper than calling cards.

highly recommend especially especially for international calls...
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Old 01-09-2010, 06:43 PM   #10
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Borislow said the device is legal because wireless spectrum licenses don’t extend into the home.
If this is true I don' see how they can win a case against them. I'm guessing it works under the same principal of broadcasting FM signals in your house. Since it is broadcasting under the permitted distance, it seems that it is legal.
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Old 01-09-2010, 09:31 PM   #11
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damn, i might need to get this.
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