How does MagicJack Work? People are asking this question along with, why so cheap? People think that this is one of those; too good to be true things, with all the features promised, caller ID, voice mail, call waiting and directory assistance to name off a few.
That's what I thought when I first heard about it. I for one am glad that I took a second look because it has been my home phone since January 2008. This device has saved me at least 96 percent of what I would have paid to my old landline service, so the answer is yes, to the question of DOES MagicJack work.
How does MagicJack Work?
There are two main differences in the way MagicJack works from other VoIP providers.
First - it plugs into your computer like a flash drive and not your modem. This makes the device totally portable and can be taken and plugged into any computer with high speed internet. The one problem with this is your computer must be running at all times to receive calls.
The Magic Jack dongle has within it a small circuit board that has a read only memory chip with preloaded software. Plugging the dongle into a USB port like you would a flash drive initiates a setup process. No software is loaded directly to your computer. Displayed on your computer screen is the soft phone once the setup is complete. The simplicity of this type of VoIP technology makes it so that anyone can use it
Second once the initial price is paid for device and first year of service all local and long distance calls are free. You renew your service once a year for less then 20 bucks to keep service. Monthly fees are nonexistent when calling the US or Canada. Minute rates for international calling can be purchased if needed.
You can start making calls as soon as you plug a phone into Magic Jack. Information and phone numbers can be stored in your contact lists within your soft phone of incoming or outgoing calls. It will show you the number or name of the person who is calling you on the soft phone display. An analog single from your phone is transformed to digital and sent across the internet like an email message.
Why so cheap?
Other VoIP companies need to lease the networks of switches and gateways from telecom companies where Magic Jack does not, making it possible to offer the type of once yearly renewal fee for full phone service.
Dan Borislow is the inventor of MagicJack and founder of YMAX, a CLEC (Competitive Local Exchange Carrier) certified Telecom Company. People pay him for use of his networks where Magic Jack does not. So they make their money from leasing the switches and gateways owned by essentially Magic Jack.
Also for future revenue they may sell the ad space on the space on the soft phone used now to display information about MagicJack.