Like other VoIP service providers, MagicJack sends calls over an IP network instead of the standard public telephone network, so it can sell phone service for less. The company charges US$40 for the MagicJack and includes one free year of service, then charges $20 per year for subsequent years. That covers calls to other MagicJack users as well as to conventional phones. The pricing will remain the same for the new femtocell.
The current MagicJack is a device about the size of a matchbox with a USB connection and a phone jack. The USB connector plugs into the user’s computer, loads software onto it, and uses the computer’s power, processor and broadband connection. The femtocell will also use the PC, but it will let users make calls with their cell phones instead of wired phones.