IP Democracy: Is MagicJack a Skype Killer?

Marketwatch’s Herb Greenberg has this interesting item today about a new device called the MagicJack, slated for unveiling at TED. Colorful low-cost calling pioneer Dan Borislow invented the device, which purports to support free phone calling on any phone by simply plugging the MagicJack into a computer’s USB device.

The MagicJack website, which went live this morning, makes free VoIP phone calling look as simple as that — plug one end of the device into your phone and plug the other end into the USB port and call away. Borislow says the set-up takes 45 seconds.

No word yet on how much the MagicJack, which goes on sale in April, costs, but Borislow says the price will be “disruptive.” There does seem to be a slight hitch in terms of the free phone calling — the device will deliver no-cost communications for one year, but after that the MagicJack requires renewal for a “low annual rate.”

Plus, international phone calls are free only to other MagicJack owners. Otherwise, international calls entail a “low rate,” according to the web site.

Aside from the free or low-cost calling, the big advantage of MagicJack seems to be the ease of installation and use. If it works as advertised, if it’s a plug-and-play unit that works on any analog phone, that’s a huge advantage over any other VoIP set-up, including Skype. But so many questions remain until the service is up and running. How much does the unit cost? What’s the renewed subscription price? What kind of service quality does MagicJack deliver?

Borislow and his colleague Donald Burns are serious about this business. The two just purchased SJ Labs, which is one of two competitors that licenses the underlying softphone technology that almost all VoIP providers use.

Posted by Cynthia Brumfield on March 8, 2007 9:33 AM to IP Democracy