MagicJack: Too good to be true?

It sounds too good to be true -- a small device which, when purchased and plugged into your computer, gives you unlimited long distance and local telephone service for less than $20 per year.

You've probably seen the ads for "MagicJack," which is now carried by major electronics and discount chains and can be ordered from TV ads or online. But is it worth the hype?

In general, the concept of making telephone calls over a high-speed internet connection is growing in popularity. You can sign up for telephone service directly from a cable Internet provider, or you can turn to a third-party company like Vonage which will provide the service.

Such voice over Internet protocol, or VOIP, service can be less expensive than comparable tiers of traditional phone service, but the MagicJack service is much, much less expensive: $19.95 for a year's worth of unlimited calling. The first year's charges are included in the gadget's purchase price. (You do, of course, need to have a high-speed Internet connection, such as cable Internet or DSL.)

The reviews I've found so far for MagicJack service have been mixed. On the one hand, once you get the service hooked up and configured correctly, it seems to work. Here's what Hiawatha Bray of the Boston Globe had to say about the product earlier this year:

"After a bit of reconfiguration, everything began to work as advertised. Calls came through, and sound quality was as clear as a standard landline.

"Still, I'd never use MagicJack as my primary phone. I'm not prejudiced against Internet-based phone systems. I already use one, through my cable and Internet provider, Comcast Corp. But the Comcast system is more robust....

"For instance, the cable modem that delivers the phone service has a battery that keeps the phone line alive for several hours if there's a power failure. Besides, the cable modem is independent of my computer. If my PC is switched off, I can still order pizza or call the police...."

That seems to be a common complaint about MagicJack. If you're really going to rely on it as your primary telephone service, you have to be aware that it's dependent on the computer into which it has been plugged. If the computer is off (or if the power goes out, or you have to send the computer out to be repaired), the phone is off.

PC Magazine originally gave the product its "Editor's Choice" award, and you can see the little PC Magazine logo on the TV ads and on the MagicJack web site. But the magazine went back and did a followup review earlier this year after some changes were made to the product and its software, and after some readers complained about customer support.

"The hardware impresses, and call quality is good, but significant customer support issues make MagicJack a risky investment," states the magazine. The limited customer support is particularly troublesome because MagicJack can be affected by other programs such as firewalls, and the non-tech-savvy users to whom the TV commercials are directed may not be able to recognize or work out such conflicts on their own.

"MagicJack works quite well even if it needs 'tuning' when installed," wrote T-G reader Bob Moore, who has just renewed his service for a second year. "I have used 6 different phones with mine and all worked well." But Moore said customer service is "horrid" and suggests asking for Level 2 customer service.

The performance of the MagicJack software can also be affected if you're doing other bandwidth-heavy tasks (such as downloads) on your PC at the same time you make a call, according to reviewers and Moore.

Some individual web sites claim that the MagicJack software includes spyware-like features that look at the numbers you call in order to generate targeted advertising on the MagicJack software interface. But I haven't seen any concern about spyware from any well-known publications or sites. PC Magazine, for example, doesn't mention it at all. So, without better information, I'm hesitant to suggest that it's a real threat.

The MagicJack software doesn't come with an easy uninstall feature, so if you decide to stop using it you'll have to look online for detailed instructions which some users have posted about how to remove the various files and registry entries created by the program.

"My mother got one a few months ago," wrote another T-G web site reader. "Seems to work pretty well. Think maybe she had an issue with billing, but not sure if it was resolved."

lf you don't want to go the MagicJack route, Internet phone service is available from most cable Internet providers (which for most of Bedford County means Charter Communications) or third-party companies like Vonage. Be sure and ask about how any VOIP provider handles emergeny 9-1-1 calls so that they are routed to the correct dispatch center.

Another route is Skype. Skype won't replace your normal telephone service, but it will allow you to make long-distance calls over the Internet. It's free to download the software and set up an account. You pre-pay for a given amount of calling time (much like a pre-paid cell phone) and make outgoing calls. Even better, if the person you're calling also has Skype, you can talk for free, with or without video, by calling them through a "buddy list" feature similar to AOL Instant Messenger. But that buddy list is the only way to receive calls on Skype; unlike MagicJack, Vonage or Charter, it doesn't assign you a normal telephone number.

In 2007, I taught a workshop in Skype in Bolivia. A number of Bolivians have migrated to Spain, and those who are left behind use the service as a low-cost way to keep in touch.

In order to use Skype, you do have to have either a computer headphones-and-microphone headset or a Skype-compatible phone which will plug into your computer. If you want to use the video calling feature, of course, you'll also need a web cam.

For many younger people, of course, the whole discussion is moot; many have skipped traditional home phones altogether and now do everything over their cell phones. I suspect that the wireless lifestyle, not MagicJack, may be the wave of the future.

-- John I. Carney is city editor of the Times-Gazette and covers county government. He is also the author of the self-published novel "Soapstone." His personal web site is lakeneuron.com.