At 21 Feb 2008 13:06:23 -0800 4phun wrote:
>
> I think that with a low enough price point that unlimited becomes
> useful for those who want to drop a landline and go all cellular all
> the time.
>
> Unfortuantely I think that getting Magic Jack is a bigger bang for
> the buck in dropping a old fashioned landline then trying to cut the
> cord using a cell phone plan. You can't beat unlimited calling in the
> US and Canada 24 X 7 for only $20 a year. Plus you get all those
> advanced phone services thrown in for free also .


Magic Jack is an interesting option, but it's probably doomed.

The "$20/year" is a money losing proposition for them- they don't own their
phone numbers, so thy have "rent" them from a provider like Level 3 for
maybe $3 or even more depending on the amount of incoming calls. Then they
have to pay termination fees of $0.01-0.05/minute (depending on where you
call.)

Magic Jack is hoping to make it up on sales of banner advertising you'll
see on the softphone display, which may or may not cover their costs.

> Magic Jack is one kick ass phone company when it comes to net cost!

Sure. Anytime you give a product away, consumers will be happy! Magic
Jack will be a heck of a bargain...

....until the VC money runs out! ;-)


> Now if AT&T could drop the cell bill to only $20 a year that would be
> something.

Maybe after they start running 30-second commercials on your iPhone display
before and after each call they will!