MagicJack now wants to end cell phone fees.

abbas474

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Once upon a time, MagicJack was a simple little gadget -- loathed by many for its aggressive marketing tactics -- that you plugged into your computer. You just attached a wired phone to the device and, presto, you're making free phone calls via the web. (MagicJack costs $40 for the first year, then $20 for additional years of service. International calls cost extra.)

It's a pretty good deal, it works well enough, and the company has more than its share of fans.

Now MagicJack wants to take things a step further -- to the obvious arena of wireless phones.

The new version of MagicJack is designed to cut the cord and work directly with your cell phone. It is in effect a "femtocell" -- a small cell phone tower that picks up wireless signals and is typically used to boost your cell signal in weak areas.

But instead of routing a call through a cellular provider's network like a typical femtocell does, MagicJack intercepts the cell signal and zaps it across the (free) Internet, just as the old model does with wired calls. You don't pay for the call unless international boundaries are crossed, which means customers can get away with bare-bones calling plans with a minimum of minutes, since calls routed through MagicJack aren't deducted from your account.

Registering your phone to work with the device takes a couple of minutes, and the device's range is reportedly wide enough to cover a 3,000-square-foot home. Pricing remains the same as the old MagicJack.

The catch? The wireless MagicJack may not be entirely legal, since it's using wireless spectrum -- spectrum that is reserved and owned by the cell carriers -- without permission. MagicJack argues that inside your house you can do whatever you want, with any spectrum you'd like, but the government -- which hasn't commented yet -- may ultimately feel otherwise.

The new MagicJack won't be sold for another few months, at which point the situation may be entirely different: Expect legal challenges from the notoriously litigious cell carriers (upset about missing out on their minutes) as well as potential FCC headaches. In other words: Buy one quick, before they're banned.
 
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