Move Over Skype: MagicTalk Abolishes Call Charges

by Matt Klassen on August 17, 2010

Many of you have probably heard of the MagicJack, the shady little device that helps users skimp on their phone bills–and if you haven’t heard of it, perhaps you need to spend a little more time watching infomercials. But the news this week is that the company behind MagicJack, VocalTec, has gone one step further and eliminated all phone charges made to both regular and mobile phones with their newest VoIP service, MagicTalk.

Over the past few years services like Skype have become immensely popular. Offering free PC-to-PC calling, these VoIP services have become the norm for many in the telecommunications world. The downside was that using services such as Skype on your mobile device ate up precious minutes, and using it to call a landline had a fee associated with it. However, now that VocalTec has found a way to eliminate all charges, these popular VoIP services seem rather paltry in comparison.

Further, with the additional report that VocalTec’s latest service will be available within the week for Windows and Mac computers, with versions for all the popular mobile operating systems set to follow in early Fall, it seems that the only companies left making money off phone calls are the Internet service providers, which begs the question, is this the end of telecommunications as we know it?  

I doubt it. Telecom companies are much too shrewd to let a little thing like free calling from both your home and mobile phones stop them from making money. If services like the MagicJack become incredibly popular, you will inevitably see a significant spike in the basic cost of having a landline in your home, and should you choose to abolish it in favour of a mobile device, you’ll be sure to see a decrease in contract minutes associated with a significant increase in your contract fees.

But for the moment, folks, lets enjoy the fact that a company like VocalTec has taken VoIP one step further and given us unlimited talk time on our home phone, a move that is sure to save people a great deal of money…in the short term at least.

So how does a company like VocalTec pull this off? How do they make money? Being a phone company, VocalTec’s chief source of income, strangely enough, is other phone companies, whom the company charges for calls placed to Magictalk numbers. Further, if you’re looking for a cheap solution to placing calls overseas, think again, as there will be fees [most likely significant ones] associated with any calls to numbers abroad.

While the company provides you with a free MagicTalk phone number, the last downside—and there had to be a few—is that they’ll have to pay to retain your old number. But with that said, for those always on the lookout for ways to save money, the MagicTalk may just be the telecom solution you’ve been looking for.

Affordable, versatile, and highly functional, one thing is clear; VocalTec has laid down the gauntlet for the likes of Skype and advanced the cause of VoIP across the continent. Not bad.

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Written by: Matt Klassen. www.digitcom.ca >. Follow TheTelecomBlog.com > by: RSS >, Twitter >, Identi.ca >, or Friendfeed >

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