It is real it has been discussed a lot on many of the tech forums. Some people have them and use them and like them. Recently there was some discussion that they were going out of business. I personally have never used one.

Magic Jack costs $40 for the gadget plus $20 yearly.

Check out Skype, talking computer to computer anywhere in the world is absolutely free plus you can send files and photos while chatting. And for the fees shown on the link below you can talk to landlines and cell phones in the given areas. Anywhere in Canada or the US is $2.95 monthly for example.

Here is a link that might be useful: Skype

Look under the Money Saving Tips forum and youll find lots of posts about it. I got one a few days ago and am putting it through various tests. So far itÂs met all of my expectations.

I got one just a couple of days ago and so far I like it for the most part.

There are a few annoyances. I had trouble getting it working when I first connected and due to communication problems with support, I thought they wanted me to permanently stop my firewall (they wanted me to temporarily disable it to get one part done, then re enable it). I also needed to unplug my DSL modem and my router when I first started. It seems as if the softphone program crashes the first time it starts when I turn the PC on in the AM and I have to manually restart it. The e911 shows yellow on the softphone, but if I log in to the site, it shows green, so I don't know if it works or not.

One thing that concerns some people is that MagicJack tracks the numbers that you call in order to try to serve targeted ads.

One disadvantage of the MagicJack that is shared by Vonage, cable phone service and Skype is that if power goes out or the internet connection goes out, the phone goes out. On our land line, most of our phones will fail if power goes out, but we have one that doesn't require power (just in case).

I know very little about cable phone service, so I won't comment on that.

I've never used Vonage, but have used Skype (including Skype in/Skype out).

MagicJack vs Vonage

Like Vonage, MagicJack has e911, so it can be used for emergency calls. Like Vonage, you can plug in a regular phone and use it.

I don't know how it compares with Vonage for sound quality.

It is much cheaper than Vonage, costing less on an annual basis than Vonage on a monthly basis.

One disadvantage compared with Vonage is that with MagicJack, you need to have your computer on and connected to the internet any time you would want to make or get calls (not an issue for me, since the PC is on all the time, anyway, but for people who turn the PC on only when they use it, that might be an issue).

If you plan to use it for travel, it takes up less space than the Vonage box. And you don't have to use a phone with it. You can use a PC headset and dial using the keyboard and/or the mouse with the softphone. Carrying the MagicJack dongle and a headset (especially a retractable one like the Zip Linq) takes up much less room.

In short, if you don't leave a PC on all the time or if you are concerned about the call tracking, Vonage is a better choice. If you leave a PC on all the time, want to save money, want to travel light and aren't concerned about the call tracking, MagicJack is a better choice.

MagicJack vs Skype

I've used Skype for Skype-to-Skype calling, Skype in and Skype out.

Skype supports video calling (Skype to Skype), but MagicJack doesn't, even MagicJack to MagicJack.

If you mostly call other Skype users, Skype is cheaper than MagicJack, since it's free. Otherwise, MagicJack is much cheaper than Skype in + Skype out. Both offer plans with unlimited calls to Canada/US, although with Skype, the calls also have to originate in Canada/US (and sometimes a network will be incorrectly identified as being outside these two and you'll get charged for international calls). With MagicJack, calls to the US and Canada are at the fixed rate no matter where you call from. The MagicJack fixed rate is also much cheaper than Skype.

Skype out supports calling to countries other than US and Canada, but MagicJack doesn't, except to other MagicJack users (at least not yet, but they say they plan to offer that in the near future).

There are Skype compatible phones that you can buy if you want to use a phone instead of the softphone/keyboard/headset. Personally, I like using a headset, since it leaves my hands free. I do like using a cordless phone with headset, though, since it untethers me from the PC. I have a Linksys CIT200 (wireless DECT phone) for the Skype. It's small enough to take with me when I travel if I want (much smaller than a cordless phone for the MagicJack would be). Theoretically, I should be able to use it with the MagicJack, but I haven't been successful yet.

I was very impressed with the sound quality on Skype (most of the time). So far, I'm even more impressed with the sound quality of the MagicJack. I find it comparable to a land line. I've read that this is partly because they are their own CLEC.

If you use Skype out, the person you call sees the number as something like 000-001-2345, even if you have Skype Out. MagicJack correctly reports the number.

If you want video calls, or want to call countries other than the US and Canada, or call mostly other Skype users, Skype is probably a better choice.

If you call mostly to the US and Canada, don't mind the number tracking, want better quality for calls to phones, Magicjack is a better choice.

Of course, there's nothing wrong with having both. I plan to use Skype for Skype-to-Skype calls (with or without video). For the rest, I'll use MagicJAck.