Company behind magicJack to banish calling costs

By Peter Svensson, AP Technology Writer  |  August 13, 2010

NEW YORK --The company behind the magicJack, the Internet phone
gadget heavily advertised on television, has another trick up its
sleeve: free phone calls from computers, smart phones and iPads.

The cost of phone calls routed over the Internet has been on a long
slide. There are already a multitude of programs that allow free
calling between computers, and some that allow free, but short, calls
to regular phone numbers. Another alternative, Google Voice, provides
"free" calls to the U.S. and Canada, but you need a phone to use it,
and if you're using a cell phone, it uses up minutes.

MagicTalk would go one better by eliminating fees for calling
landline and cell phones in the U.S. and Canada, with no time limits
on the calls.

The software will be available next week for Windows and Mac
computers. Versions for the iPhone, iPad, BlackBerry and Android
phones will follow in September or October, said Dan Borislow, the
CEO of VocalTec Communications Ltd.

Each magicTalk user gets a phone number that's associated with the
software. Users will also be able to move their existing phone
numbers to the service, for a fee, a feature that will be extended to
magicJack users soon as well.

The reason the calls can be free is that VocalTec operates as a phone
company, so it can charge other phone companies for calls placed to
magicTalk and magicJack numbers. It also charges its users who dial
phone numbers abroad.

Still, magicTalk will likely have slimmer profit margins than
magicJack, which costs $40 and comes with a year of free calling in
the U.S. and Canada (an extra year costs $20).

...

http://www.boston.com/business/technology/articles/2010/08/13/company_behind_magicjack_to_banish_calling_costs/

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