Re: [asterisk-biz] MagicJack

I read somewhere that they have CLEC status in most of the states, so they maybe able to terminate calls for almost nothing.
But even if termination cost you nothing, it is still very hard to make money on $20 a year. Even if your costs are zero...

Nitzan Kon wrote:

Matthew Rubenstein wrote: 	Anyone know any more details? How do they offer $20:year, when most VoIP competitors charge at least $15-35:month? Are they using Asterisk for infrastructure - any thing more than maybe just     

voicemail?  It's $20/yr, but you have to buy their device ($40) that connects to your computer via USB. They then (plan to) proceed to spam you with ads using the software you need to install to run the device. You cannot use an ATA or any SIP device with their service as far as I know.  They do have CLEC status in some state (all of them?), look up YMAX Corp. So they should be getting some price breaks (and reciprocal revenue?) from that. But I think their main business model is to steal as much customers and start spamming them with ads.  I dunno about this business model though. They're basically selling service way below cost, assuming they can recoup it back in advertisements. I doubt this will work long term.  More likely, they'll go out of business, taking all the cash they amassed with them and leaving the users to hang out dry. I've seen some people buy ahead 5 years of service with their device. Dunno about everyone else but I'm not so sure they'll be able to stick for 5 MONTHS.. let alone 5 years.  (having said that, they started last year, and are backed by a guy with pretty deep pockets. So who knows...)  -- Nitzan Kon, CEO Future Nine Corporation www.future-nine.com   _______________________________________________ --Bandwidth and Colocation Provided by http://www.api-digital.com--  asterisk-biz mailing list To UNSUBSCRIBE or update options visit:    http://lists.digium.com/mailman/listinfo/asterisk-biz