A host of VoIP services have been popping up over the past several years.  Some like Sun Rocket have gone out of business.  Others, like Vonage, have faced lots of problems generating revenue and staying out of court.

magicJack won’t make their problems any easier.  If they keep things up, they will change the telephony industry.

Unlike other VoIP services that cost at least $20 a month, magicJack gives you unlimited calling in the US for $20 per year.  That’s a savings of $200 to $300 a year in most cases.

How does it work?  magicJack is a USB key drive that you plug into your computer.  You attach a normal telephone to the magicJack device, and that’s it - it works just like your traditional phone.  Although this limits you to one line, lots of phones nowadays have several wireless extensions, so you can plug in the base to magicJack, and just leave the wireless extensions around the house.

There is also software on the magicJack device that allows you to make and manage calls from your desktop, so you can either use a traditional phone or your computer with a mic and a headset.  When using the service from a computer, you also get Outlook integration which makes it a lot easier to call your contacts.

Better yet, since magicJack is just a USB drive, you can take it anywhere in the world to both make and receive calls.  All you need is a broadband connection with about 80k of bandwidth.  This is great for frequent travelers, particularly those that spend a lot of time abroad when you’d normally pay over a dollar per minute.

Apparently, magicJack manages much of their telephony network to ensure quality calls.  I am unsure, however, how the company will continue to manage this network over time if each user just pays $20 a month.  But, from what I’ve read so far, the call quality of the magicJack network is above average.

magicJack also has features like voice mail and three way calling.  You can get a magicJack phone number in most domestic area codes.  You can also port your number for a small fee.

The verdict?  Well, the service has been getting decent reviews so far, but it still has a long way to go.  Features like number porting and call forwarding are not yet available, and this makes me a bit nervous about the service.  Who knows if the company will actually come through with these features?

magicJack requires that you leave your PC on, as well.  This really isn’t a problem for me, but it may be a pain for some users.

Also, the company’s website is a mess.  The homepage is basically a video player - they should dedicate more screen real estate to helping users understand the service instead of relying on video reviews, although, of course, the reviews are positive.  The company needs to do a LOT more explaining and convincing, and make this information readily available on their home page.

But for $20 a year, you can’t really complain.  Sure, there’s lots of room for improvement, but as is, the service will save you a bundle.

There is also a 30 day free trial period, so if you don’t like it, you can get your money back.

You can purchase magicJack here.  Let me know if you have any reviews.

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