[asterisk-biz] MagicJack

[Nitzan Kon]

> 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