Magic Jack Moves Into The Cell Phone Market

[dereksworl]

I imagine the cell carriers are pretty pissed and will be trying to squash this lol. From Yahoo!

MagicJack's next act: disappearing cell phone fees

LAS VEGAS - 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.

[dpomp]

Originally Posted by dereksworl

I imagine the cell carriers are pretty pissed and will be trying to squash this lol. From Yahoo!

the crappy part is you still need broadband connection.

i'd still prefer my cell phone when i'm in the middle of no where (as long as it has coverage )

[dereksworl]

Originally Posted by dpomp

the crappy part is you still need broadband connection.

i'd still prefer my cell phone when i'm in the middle of no where (as long as it has coverage )

yeah i know. but believe it or not, i use my cell phone more when im home than when im out

[dpomp]

Originally Posted by dereksworl

yeah i know. but believe it or not, i use my cell phone more when im home than when im out

i don't even have a home phone i use my cell phone exclusively.

[Uniquely]

Originally Posted by dereksworl

I imagine the cell carriers are pretty pissed and will be trying to squash this lol. [/URL]

They'll have a hard time if the letter of the law is strictly followed throughout the legal proceedings that are sure to follow, since the carriers' ownership of those frequencies does NOT extend into private homes. Of course the courts often find ways to "interpret" law to get the desired outcomes.

[Uniquely]

Originally Posted by dpomp

i don't even have a home phone i use my cell phone exclusively.

Don't be you're not alone. 20% of American homes no longer have landlines.

[mikejet]

Originally Posted by dpomp

i don't even have a home phone i use my cell phone exclusively.

My wife and I are like that. Stupid cable company keeps bugging us to bundle up our services.

[Simplayer]

Originally Posted by robinandtami

They'll have a hard time if the letter of the law is strictly followed throughout the legal proceedings that are sure to follow, since the carriers' ownership of those frequencies does NOT extend into private homes. Of course the courts often find ways to "interpret" law to get the desired outcomes.

Weh? That doesn't sound right.

[Uniquely]

Originally Posted by Simplayer

Weh? That doesn't sound right.

Which part? The cell carriers each bought, and legally own, the sole rights to the radio frequencies that they use. However that ownership does not apply inside our private residences.... we own the radio waves inside our house. This device will basically convert the cell phone signal into a wi-fi signal and then use our broadband internet for the conversation... like Vonage. The carrier's towers or bandwidth will not be used at all. They will still scream and kick about it because people will be able to use lower minute plans since many of us do a lot of talking at home.

[Simplayer]

(What doesn't sound right) The ownership of the spectrum inside private residences. We don't own the air over our head (well, properties head), I'm not sure we own the radio waves either.

[Septimus Prime]

As a MagicJack user, I'll say this: MagicJack sucks. Call quality is spotty, the software is awful, and you have to keep your PC on the whole time. Yeah, it's cheap, but my dongle is already not really working. I have to unplug and plug it back in all the time, and I just decided not to bother and to just use my cell.

[JimShaw]

Originally Posted by Septimus Prime

As a MagicJack user, I'll say this: MagicJack sucks. Call quality is spotty, the software is awful, and you have to keep your PC on the whole time. Yeah, it's cheap, but my dongle is already not really working. I have to unplug and plug it back in all the time, and I just decided not to bother and to just use my cell.

I have had MagicJack for about 6 months now. Turned off my land line and save $44.00 a month in phone fees and taxes.

So far it has worked great. I even use it as a fax line. I works one on base and two remotes in my home.

Yes, my computer has to be on all the time but it was anyway. When I leave the home for a vacation and turn the computer off, MJ still answers my calls and stores them for me. Or I can keep the computer off and get my messages from long distance.

[Dexter Morgan]

For home use, I definitely prefer my Ooma device. Took about 5 months to recoup the investment, but there are now no more home phone bills whatsoever. Call quality is excellent, and haven't had one issue in over two years of use.

[STARSCREAM]

This is awesome.