MagicJack vs. Vonage vs. Skype
SPOT MORE COOL STUFF:
Telephones | VoIP & Internet Phones | 98 Comments
Telephone land lines are expensive. And so very 1990s. If you have a high speed internet connection you already have a modern communication line you can use for telephone calls.
With an eye towards ridding yourself of your phone company, Spot Cool Stuff examines three internet telephone services: MagicJack, Vonage and Skype. With all three you can dial out to any telephone number in the world. With all three you can receive a call from any telephone in the world. It is there, though, that the similarities end.
So which of the three services is best? Read on for our full analysis or skip ahead to the conclusion.
Set Up And Equipment Needed
MagicJack is a cool matchbox-sized device that converts your normal phone jack to a USB outlet—you plug your existing phone into the tiny MagicJack and then plug that into your computer. Before you can make a phone call you’ll have to install some software (it works with Windows and the Mac OS but not yet Linux), register with MagicJack and get your assigned phone number. The whole installation process takes 5~10 minutes. The catch is: to make or receive calls with MagicJack your computer must be turned on with the MagicJack software running.
Vonage, unlike MagicJack, bypasses your computer altogether. You plug your phone into the Vonage phone adapter and the Vonage adapter into your high speed modem. From there, you use your phone exactly as you would a land line one.
Skype, at its most basic level, is a free program you download onto your computer. If you have a computer microphone and speakers (or a headset with a microphone) then you can talk to any other logged-in Skype user for free! Through the software you can also call any phone number (either land line or cell) for a fee. To use Skype like your current land line phone, though, you’ll also have to purchase a phone number and a special Skype-enabled phone; the current phone you have in your house will not work. Sadly, there isn’t yet a huge selection of Skype phones—read our reviews of the best ones.
AND THE BEST IN TERMS OF SET UP AND EQUIPMENT NEEDED IS . . .
Vonage, the only one of the three that let’s you use your current phone with your computer turned off.
Cost
MagicJack is $40 for the first year (that includes the physical USB adapter and software) and $20 for every year after that. From the U.S. you can call anywhere domestically or to Canada. All incoming calls are free but you’ll be charged per minute for outgoing international calls. For example: $0.22/min to Germany, $0.15 to India and $0.21 to a cell phone in South Africa but only $0.06 to a land line. Click here to see all of the current MagicJack international rates.
Vonage has a variety of plans but their most popular residential plan is $25 a month. That includes unlimited calling to the U.S., Canada and land lines in Italy, France, Spain, UK and Ireland. International rates include $0.04 to Germany, between $0.15 and $0.18 to India (depending on where you are calling) and $0.10 to South Africa. The cheapest Vonage plan is $18/month and there are a variety of options that provide for unlimited calling to certain countries.
Skype’s software is free, as is calling to other Skype users. The cost of making calls to non-Skype phones depends on your particular situation. You can buy credits to make calls on a pay-as-you-go system. Using credits you can call domestically in the U.S. for $0.021 a minute. International rates are generally (although not always) cheaper than either MagicJack or Vonage; for example: Germany for $0.021/min, India for $0.092, South Africa for $0.068. There are also three monthly plans available that allow unlimited calling within a specific geographic area: U.S & Canada for $3/month, North America for $5/month or 39 countries for $10/month. A phone number, which you’ll need to receive calls (obviously) or to make them via a Skype phone, is $30/year if you are also subscribed to one of the monthly plans.
AND THE BEST IN TERMS OF COST IS . . .
MagicJack, by a considerable margin, if you call primarily within the U.S. and Canada. If you make a lot of international calls Skype may well end up being cheaper for you.
Call Quality
Each of these services is capable of delivering clear quality calls. On occasion each of these services deliver calls that make the people on the other end of the phone sound like they are submerged in water.
Given that, anyone who definitively tells you that one of these services absolutely offers better call quality than another is almost certainly bias in some way. It is impossible to make an objective blanket statement comparing the three. Not only does the quality depend greatly on the quality of your internet connection, the quality of your computer (in the case of MagicJack) and the phone number you are calling but it also seems to have a certain randomness factor.
For what it is worth, Spot Cool Stuff has used all three services from a variety of locations. In our experience Vonage provides high voice quality calls most consistently. However, this week Skype released it’s much anticipated software version 4.0 for the PC. We’ve found the call quality the new software provides to be fantastic. Until we test it out more, over a period of months, we can’t make any judgments about how consistently it works. However, the initial indications are very positive. (The upgrade for the Mac software, v2.8, is downloadable from the Skype site but is still in beta form at the time of writing.)
AND THE BEST IN TERMS OF CALL QUALITY IS . . .
Vonage, maybe, slightly, possibly, with the caveats given above.
Features Offered
Our basic summary of the features available on each service:
| Feature | MagicJack | Vonage | Skype |
| Usable with your computer off | No | Yes | Yes (if you have a Skype phone) |
| Usable with a normal analog phone | Yes | Yes | No (unless you have an adapter; see comment #29 below) |
| Voicemail | Yes, will record a .wav file if your computer is on; you can’t call in for messages. | Yes | Yes (free with monthly plan, $20/year otherwise) |
| Video chat | No | No | Yes |
| Send & receive SMS text messages | No | No | Yes |
| Available to consumers outside the U.S.A. | No, but you can travel with the MagicJack and call into the U.S. and Canada | Can use it from anywhere but must have USA, UK or Canada billing & mailing address to sign up | Yes. Skype is the most international and travel-friendly of these three |
| Emergency 911 Calling | Yes | Yes | No |
| Keep your current land line phone number | No | Yes (usually) | No |
| Works with a dialup connection | Technically yes but dreadful quality | No | Yes, okay quality |
| Three way conference calling | Yes, but the 2 calls need to be inbound to you. | Yes | Yes (conference calls up to 9 people possible) |
| DTMF1 | Yes | Yes | Yes, through software 4.0 for the PC and 2.8 (beta) for the Mac |
| Automatic call forwarding (eg. to your cell phone) | No | Yes (free) | Yes (free with subscription) |
| Feature | MagicJack | Vonage | Skype |
1 DTMF is Dial Tone Multi-Frequency. This is what lets you type in numbers to an automated service, when you are asked to push “1″ for one option, “2″ for another, for example.
AND THE BEST IN TERMS OF FEATURES IS . . .
Vonage, if you are looking for the same features you have in your current land line. However, it could be that the feature set of either MagicJack or Skype better fits your particular needs.
Privacy & Customer Service
Here things get tricky when assessing MagicJack as a product. There are MagicJack customers who love the product (eg. check out this positive review of MagicJack). There are also a significant number who consider the company akin to a scam. The complains of the latter group fit into three basic categories:
1) Privacy issues. The MagicJack software displays ads on your computer (which is a major reason why their service is so cheap). And their Terms Of Service states: Our computers may analyze the phone numbers . . . you call in order to improve the relevance of the ads. We do not provide any personal information to our advertisers or third parties. Despite that promise not to share personal information some people feel that the number of telemarketing calls they receive goes up after signing up with MagicJack. Others (including yours truly) are simply uncomfortable with a company collecting data on personal phone calls. (Click here to read MagicJack’s CEO response to this criticism).
2) Over charging. There have been a lot of complaints about MagicJack debiting more than the agreed amount from consumers’ credit/debit cards and not honoring their 30-day money back guarantee. The complaints launched at least one investigation by a local news agency and lead MagicJack to have an F rating from the Better Business Bureau for many months, though these days their rating is back up to an A-. (Click here to read MagicJack’s CEO response to this criticism)
3) Once you install the MagicJack software there’s no easy way to uninstall it, especially from Windows where a manual uninstall process involves editing your computer’s registry. It has been left to a group of enterprising individuals to create an unofficial (and very anti-MagicJack) online uninstall guide. Further, this software slows some computers even when MagicJack is not in use.
After spending many hours researching the validity of these complaints Spot Cool Stuff has ended up somewhere between the company’s ardent supporters and ardent detractors. We don’t think MagicJack is a scam. We also think there’s some merit to their critics’ arguments. The difficulty of uninstalling software that also collects data from your computer strikes us as a particularly bad combination. MagicJack removed their forum from their website and the unofficial MagicJack forum is rife with horror stories about the company. Most troubling of all, MagicJack has no customer support email address or phone number; their Terms Of Service states that any issues with the company must be settled by binding arbitration in a court in Palm Beach, Florida.
It should be noted that both Vonage and Skype have their detractors too and neither is a bastion of superlative customer service.
Vonage has the best costumer service of the three insofar as they have a toll free phone number through which you can speak to a real live person about your issues (if you wait on hold long enough). There is no software associated with using Vonage; it is purely a hardware service.
The Skype software is easy to uninstall, does not display ads and does not collect personal information about your phone calls. The company also has a very active forum on its site. Customer service is conducted by live chat and through support requests; it can sometimes take more than 24 hours to hear back from a request.
AND THE BEST IN TERMS OF PRIVACY AND CUSTOMER SERVICE IS . . .
Not MagicJack.
So Which Of These Three Is Best?
We would love to be able recommend the ultra inexpensive, easy-to-use MagicJack. But we can’t. For Spot Cool Stuff to recommend a product we need to have a certain trust level of the company providing it. Given all the privacy and customer service issues around MagicJack that level of trust is not there for us. And even if this trust were there we’d find it very problematic that MagicJack needs a computer turned on to work. (The need for a computer is especially vexing if you primarily use a laptop).
Skype is the best service if you are looking of a compliment to your cell phone. This is exactly how Spot Cool Stuff uses Skype: We use our cell phones for domestic calls and then Skype for international ones. In fact, with the fantastic Skype iPhone app you can use Skype on your cell phone (presuming you have an iPhone). Except for video chats we exclusively use Skype via an iPhone. (Speaking of video chats, it is very cool and surprisingly high quality on Skype).
Another great feature of Skype: it is also scalable. If you make, and receive, lots of international calls you can get a Skype phone and number. If you make a few international calls you can buy a headset along with a few pay-as-you-go credits. Before making an international trip we strongly suggest that people buy $10 in Skype credits if only to have in an emergency to make phone calls home—see our review of useful websites to use while traveling for more info.
At the start of this article, though, we stated that we were looking for the service that could best replace a telephone company land line. Without a doubt, the best service for that task is . . .
. . . Vonage.
If we were to stealthfully break into your house and replace your telephone company land line service with Vontage you might never notice a difference. You’d have the exact same phone number (not so with MagicJack or Skype) and the exact same phone (not so with Skype); you could use your phone without a computer (not so with MagicJack) and you’d be unlikely to notice much quality difference. Yes, Vonage is the most expensive of these three services. But this is one of those times when you get what you pay for.
MAGIC JACK | VONAGE | SKYPE | FOLLOW US ON TWITTER |
Related posts:
The Best Skype Phones
Skype Comes to the iPhone
Play Music, Wirelessly, Throughout Your House
Canon 40D vs 50D
Turn Your BlackBerry Into A Universal Remote Control
MagicJack for a Cell Phone
Questions? Comments? Call upon our comments section:
February 6th, 2009at 1:44 am(#)
This is an outstanding review. I’ve had Vonage for a little over 3 years now. I actually got it when I was stationed in Korea … even I, and many other service members were technically violating the terms of service, the phone worked great for both incoming and outgoing calls.
Since I’ve been here in Hawaii, I’ve had a few problems with call quality, but I suspect it’s just as likely to be a problem with the cable company as Vonage itself.
We’re moving to Texas in a few months. I had been toying with the idea of giving up Vonage and ordering the MagicJack. After reading your review, I’m glad I didn’t.
I think I’ll just stick with Vonage … and maybe download Skype in case I want to video chat or send some texts.
Thanks,
Todd
February 6th, 2009at 8:26 am(#)
I second what Todd said about this review. I really appreciate how all your tech articles are fun to read yet without hype.
After reading your review I was thinking getting Skype along with a Skype phone. Could you suggest a low cost phone? When I travel do I just bring the phone with me?
Thanks, Mark
February 6th, 2009at 1:03 pm(#)
Todd:
Thanks for your kind words. Glad we could help.
You may as well download the Skype program (it is free) and maybe get $10 in credits and try out the photo capabilities of it. Skype is ideal for people who move around a lot overseas, which is sounds like you do.
http://tech.spotcoolstuff.com/skype/download
But it sounds like Vonage is treating you well. Glad you like it.
Mark:
As it happens we are currently in the middle of conducting a review of Skype phones. That should be published here in the next two weeks. If you want a tip now check out the Philips 321:
http://tech.spotcoolstuff.com/skype/phone/philips321
When you travel you could bring your phone with you and use it over a wifi network. But you’d be just as well off bringing a headset to use along with your laptop (presuming you travel with a laptop). That’s one of the great things about Skype: Your phone number can be anywhere you are.
February 7th, 2009at 12:02 am(#)
Great review. I prefer skype myself. It cost me $5.50 a month to call any where in the US and Canada with a local number, VM and conference calling. A land line cannot touch that price. I also purchased a skype phone for $115 that plugs into my router at home. No need for a PC. At 5.50 vs $24 for vonage it was no brainer. The call quality is great. A headset for my laptop helps save cell phone minutes when I’m on the road as well. All this and my cell phone and skype share the same contacts via outlook. And no I don’t work for skype, just very pleased to be rid of my land line and the high charges.
February 7th, 2009at 12:38 am(#)
MAGICJACK IS SCAM AND FRAUD!!!
—————————
I was incorrectly impressed by the device until I stumbled upon the fine prints.
One fine day, the company disabled my connection (after 3 months of service). They have the worst customer service I have seen. I chatted on their website with multiple reps, and finally they told me the only way to get help is to call a particular phone number. And as expected, there is no one there to pick up. About a weeks of trying, I got hold of someone and he bluntly told me that I have excessively used it. I asked what it is supposed to be unlimited talk. He DENIED and referred me to clause 6 of TOS. I asked how do you define “execessive”, he did not answer. I have used couple hours a day for 3 months and they think it is EXCESSIVE. They are not ready to enable my connection, but now asking me to pay 1cent/min (!!!). This is insane and a BIG TRAP!
Here is the clause:
————–
6. Proper Use
…
If magicJack sees excessive use or systematic or intentional misuse, it reserves the right, in our sole discretion, to terminate your use of the magicJackTM device and/or Software immediately, and you will not be entitled to get a refund of any licensing fee or any other fee you may have paid to us.
————
STAY AWAY from this TRAP!!! They seem like BIG SCAM to me!
They advertise it as unlimited plan, but TOS has mention about excessive use. This are mutually exclusive terms and they are cheating on people.
Do you agree with me? Can I sue them? Who can help me here?
February 7th, 2009at 8:41 am(#)
Thaddeus:
Glad you like Skype. (We’re fans too). There are advantages to Vonage we tried to point out (eg. 911 dialing, you keep your old phone number and phones, etc.) but it sounds like Skype fits your situation the best.
Henry:
Thanks for illustrating the point made in the review: there are people who think MagicJack is a scam. The thing is, it is also true that there are people who really like the service. So it can’t be a total scam because then *everyone* who hate it.
Still, given all the questions it seems better to stay away from MajicJack and go with Skype or Vonage, depending on your particular situation.
February 10th, 2009at 11:30 pm(#)
This is an interesting article but it is sort of an apples/oranges comparison. I use skype and it’s great, but I don’t believe it is intended to be, or appropriate for, complete landline replacement like vonage (see especially the lack of 911 calling). Skype’s video capability is one of its core strengths, but that aspect is completely outside the scope of the other services.
February 12th, 2009at 8:15 am(#)
I just got the Skype for Mac (the new beta), and it does seem to work with DTMF. I’ve been able to work with PIN codes, etc. Regarding Ooma, it is definitely able to replace a landline if it’s all it claims to be! Buy the device, plug it in as you would with Vonage, port your number (for a fee) if available, and no ongoing charges, ever! Unless you buy one of their additional services.
But, the cost is around $250.00, less through Amazon ($200.00 ish)
February 12th, 2009at 3:20 pm(#)
Which service would you use as a second home line for a home based business Skype or Vonage? The line would be used to make business calls to clients, prospecting and receiving calls from clients or new prospects.
Thanks in advance for your advice.
February 12th, 2009at 3:45 pm(#)
Dale:
I would respectfully disagree. Obviously MagicJack, Vonage and Skype are different products, but it isn’t like we are comparing Skype to a Toyota. Skype’s own marketing claims that their service can act like a land line and, anyway, consumers (like Rashad in comment #9) look at it in that way. But I do appreciate what you are saying.
Daedalus:
Thanks for the tip about DTMF! Have you tried it with more than one number? It would be great if Skype added that — 2.7 for the Mac didn’t have DTMF.
Also, thanks for mentioning Ooma. As it happens, Spot Cool Stuff has a review of it in the works. Ooma seem to be a great product:
http://tech.spotcoolstuff.com/buy/ooma
Rashad:
For a business situation, where consistency of service is paramount, Vonage is your best choice.
However, if this second line is for some one who travels internationally a lot (a salesman, for example) I’d suggest Skype and a good wifi phone:
http://tech.spotcoolstuff.com/skype/wifi-phone
February 12th, 2009at 5:27 pm(#)
I don’t want to beat a dead horse but in your response to my comment about skype not being a landline replacement you mentioned that in skype’s marketing they say that their service “can act like a landline”. I didn’t find any statements like that on their web site but I did find the following in several places:
“No emergency calls with Skype.
Skype is not a replacement for your ordinary telephone and can’t be used for emergency calling.”
I wouldn’t make such a big deal of this except that emergency calling can be really important (obviously) and it seems like a confusing subject (to me included). I’ve also found some misinformation out there (not in your article). This issue is in fact the sole reason I haven’t got rid of my landline.
February 13th, 2009at 10:54 am(#)
I really appreciate your vigilance and attention to detail, Dale.
Skype’s 911 disclaimer is one they are legally required to make in the United States by a 2005 FCC ruling. It isn’t really a marketing point.
On the larger subject, think of it this way:
McDonald’s touts the fact that it serves up burgers and fries quickly and cheaply. Burger King claims the same. Would you think it fair to compare those two fast food companies? Or would you think it apples & oranges because lots of people go to McDonalds for items like chicken nuggets that Burger Kind doesn’t even offer?
Skype touts the fact that its service can provide you with a local phone number and allow you to make and receive calls to/from any phone. These are exactly the same core functions of a telephone company land line. Skype advertises services like voicemail that are also common to land lines. And they claim that you’ll save money using them. “Save money compared to what?” you have to ask yourself. To me, all that makes our comparison a fair one.
That isn’t at all to take away from your excellent point, one we probably should have been less subtle about in our review:
You can NOT call 911 via Skype.
Through Vonage (and MagicJack, if your computer happens to be on) you can not only call 911 but the authorities will be able to trace where the call is coming from in the event you are unable to speak. People should absolutely factor that in when they are making their telephone service decisions.
February 13th, 2009at 4:09 pm(#)
FYI, our review of the best Skype phones is now published:
http://tech.spotcoolstuff.com/internet-voip/best-skype-phone
February 16th, 2009at 5:55 pm(#)
Thank you for this blog, it cleared up my mind about getting Magic Jack — which I think is the better deal once they iron out their kinks. I think keeping the computer running all the time will not be an issue so much anymore since now we watch television shows and control varies items in the house via the computer.
February 17th, 2009at 11:12 am(#)
I have been using MJ for a few months. I initially had a problem trying to get the device to function, but with an ok tech support, we got it to work, but I couldn’t get it to ring in on any phone I plugged into it. After isolating it to the MJ, they replaced it and it’s been working great ever since. I’ve taken it to the Philippines and used it on several wireless routers there and it’s just like being next door. I guess that’s where I see the real beauty of the device, small compact, plug it in anywhere there is a PC with a broadband connection, plug a small handheld or corless phone in and talk to anyone in the US or Canada for free. If you can get past all the people bashing this product, I think you might find that it’s a really great device.
February 17th, 2009at 3:47 pm(#)
i just got magic jack hooked up…i was happy with the fact that in only a few minutes i was making calls.I have noticed that with a few calls there has been an echo. Other than that, i see no problems. My lan line costs me $35 a month if i never make or recieve a call. I call my brother alot and he never seems to have a connection with his cell phone, or its cutting in and out and that is his only phone service. Replacing my lan line with the magic jack is a no brainer. It seems to be more reliable then the cell phones Ive seen and way less expensive than cell phones or lan lines. Plus my computer is on all the time. Ive seen reviews that say it slows down etc after awhile. If people would read the instructions it clearly states that it needs to be unplugged monthly.
February 21st, 2009at 1:29 am(#)
I was very concerned when I heard today that people in Canada are sometimes charged when I call them from my Vonage phone here in Mexico, so I contacted Vonage for clarification. Here’s what they said:
“Your phone number is already programmed into your Vonage Phone Adapter and if the calls are placed from your Vonage phone even when you are in Mexico, the calls are treated as a local call as dialed from Canada. If the callers are charged then they have to contact their phone service in regards to the charges.”
Any idea what this means? Are some people I call actually being charged by their own phone companies for INCOMING calls from my Vonage phone? This just doesn’t make sense to me.
February 21st, 2009at 9:10 am(#)
Hi Sheryl,
This seems to everyone here to be an issue for the people you are calling in Canada to take up with their phone company. After all, it is the callee’s phone company that is taking the money; Vonage really has nothing to do with it.
Can we ask: Do you have first hand experience with this? Or is this just something you heard?
If it is the latter case, then we’d be tempted to chalk this up to a false rumor. It doesn’t make sense to us either. And while we haven’t been in your exact position (calling a Canadian # from a Canadian Vonage adapter from Mexico) we have used Vonage to call from overseas many times and have never had anyone we called be charged for the call.
If it is the former case, then, well, you have us stumped as to why this would theoretically be. We’d be curious what would happen if you called the same person using Skype.
Thanks. And let us know what you find out.
February 21st, 2009at 10:08 am(#)
A lady I know told me about the problem. She also lives in Mexico, had Vonage but has since cancelled the service because people she called in BC and Ontario were being billed every time SHE called THEM. She even said she reimbursed her friends for the charges … so I don’t think it’s a rumor.
And yes, I agree it’s an issue the other person should take up with their own phone company, but I think there should be something posted on the Vonage site warning subscribers that this could happen, and if possible, list the phone companies and/or areas where it is a problem. I just completed a Vonage service questionnaire, told them about the unresolved question and will hopefully get an answer soon that actually makes sense. I understand there might be charges for outgoing calls TO my Vonage, just can’t figure out why phone companies would charge for INCOMING calls from anyone (and how they could even legally do that!).
February 21st, 2009at 6:29 pm(#)
Update on the billing issue from the lady who cancelled her Vonage service:
I think the reason the recipients in Ottawa and Comox, Vancouver Island were charged by Telus is because Vonage uses the Telus “methods for interfacing between packet-switched and circuit-switched networks” . This is contained in the summary of the lawsuit between Verizon and Vonage. Other lawsuits from Sprint and AT&T.
Vonage lost the lawsuit and has paid out $117.5 million in damages. I don’t believe that the other suits with Sprint and AT&T have been resolved. In Canada, I guess Telus feels they they have the right to charge someone for the long distance calls because Vonage is using their interfaces for long distance calls.
February 26th, 2009at 3:41 pm(#)
Thanks for the update, Sheryl. We learned something from this. Based on our follow-up research, this issue seemed specific to Canada. With the lawsuit it has hopefully been resolved.
March 3rd, 2009at 12:49 pm(#)
Thank you so much for this review. I’m trying to bring phone costs down but need something reliable which I think I found based on your review.
March 6th, 2009at 3:25 pm(#)
I bought a Magicjack a few months ago when I saw it being sold in BestBuy, figured its definitely not a scam if sold in this very reputable store. I’ve used it alot when Im home or traveling and have saved a ton of money. The call quality does vary from call to call though. I wanted to point something out that seems to be unclear in these reviews. When my computer is off or if Im not at home, my Magicjack calls for to my voicemail or also I utilize the call forwarding feature to my cell phone. I really dont feel like Im missing any calls at all by using Magicjack. Thought it was important to point this out since seems like your review gives Magicjack. But then again, I didnt buy Magicjack as a replacement to a landline, because Im from the generation that never had a land line in the first place. Magicjack IS my home landline.
March 6th, 2009at 3:34 pm(#)
Jake: Thanks for pointing that out! You are totally right. With MagicJack when your computer is off (or not working) you can’t make outgoing calls. And your phone won’t ring when you get incoming calls. But you can make use of voicemail not to miss calls.
March 7th, 2009at 4:35 pm(#)
I dont’ get it, with Vontage you’ll end up paying the same you would for a regular phone line, why bother ? For $25 you have a choice of quality phone (landline) vs low quality (internet), it’s a no brainer to go with the regular phone or am I missing someting here ?
March 8th, 2009at 2:57 am(#)
Notha:
Thanks for asking.
Local landline rates vary from place to place. And, of course, it depends on the plan you have and what your personal calling habits are. To see if Vonage makes sense for you look at what your current telephone bills are each month and then look at what you’d pay with Vonage for the same calls.
Where I am located, for example, a basic land-line with caller ID but without voicemail is listed at $21.95/month. Once you add in all the various taxes and fees the true cost is nearly $30/month. And that doesn’t include any calling beyond local numbers. Once my long distance charges and surcharges were included my monthly bill with the local phone company almost always topped $100. One bill was over $400.
With Vonage there’s a flat $25 fee for local calling PLUS voice mail PLUS 411 and other features PLUS all domestic long distance PLUS calls to Canada and five European countries. For me, Vonage was *easily* less expensive.
The other disconnect is your characterization of landlines being high quality and internet calls being low. Calls on both are typically of the same quality. There is a difference in the consistency of the quality. On a land line 99% of your calls sound fine. With Vonage that number is maybe 95% (give or take). The 5% of the time you get a low quality connection with Vonage the problem can almost always be fixed by hanging up and dialing again, which is inconvenient, yes, but not an insurmountable obstacle.
All that said, there are some people for whom Vonage doesn’t make sense. If you have a really low landline phone bill (eg. under $20/month) because you are anti-social or make most of your calls on your cell phone then Vonage won’t save you much. In this case consider Skype (especially if you often make int’l calls), sticking with your local landline or taking the risk on MagicJack.
Does that help? Let us know if you have more questions.
~ SCS
March 9th, 2009at 9:05 am(#)
With skype or other voip, a ATA can b used for adapting regular phone to call on these services. So YES you can use a regular phone line. (Please change this collums above).
Chas
March 9th, 2009at 11:20 am(#)
Good review. One comment about Skype: you say you need to buy a Skype-enabled (USB) phone and cannot use your existing phone. There is an alternative. You can buy a USB-to-RJE adapter box, and put that between your existing phone and your PC. I purchased one from Amazon for $25 including shipping, and it works just fine.
March 9th, 2009at 8:32 pm(#)
Chas & Jon:
Excellent point!
You can get an adapter such as this one . . .
http://tech.spotcoolstuff.com/skype/phone-adapter
. . . to use a normal phone with Skype. No one here at SCS has personal experience using one. The online reviews of the adapters seem mostly, but not entirely, positive. Also, using this adapter presents you with the “MagicJack problem” of needing to keep your computer on all the time. With a Skype phone you can de-link your Skype VoIP service from your computer.
Thanks for your comments.
April 4th, 2009at 7:54 am(#)
Please do not think I am any big fan of Magic Jack because I am not.
But you can foward calls to your cell phone as I do it all the time. It is one of the few things I can get to work right, when it works right, which is a little better than half the time.
The thing that I can’t get fixed is moving it to the wife’s computer. When I put it on hers all it does is ring all day, all night. I still have not figured that one out yet.
April 5th, 2009at 8:34 am(#)
You may also wish to try comfi.I consider it to be better than Skype.
April 5th, 2009at 11:23 pm(#)
Clement,
Well, they aren’t really comparable. Skype is a VoIP service, Comfi is a calling card company.
April 5th, 2009at 11:31 pm(#)
Jim,
Thanks for your comment and for clarifying this point.
You are right, yes, that technically Magic Jack can be set to forward call to your cell phone. You mentioned that it works for you a little better than half the time. In maybe two dozen test tried we couldn’t get ours to work once. (Maybe the reliability of it depends on your mobile phone provider??). Call forwarding is one of those things you want—and should be able to—count on.
April 5th, 2009at 11:48 pm(#)
@Spot Cool Tech Stuff:Apart from the calling cards, Comfi also offers the PC-to-phone service which is similar to Skypeout. The only thing that you have to do is that you should download a softphone e.g. Xlite and configure it with your Comfi account details. I am currently using both Skypeout and Comfi’s PC-to-phone service.The later is cheaper. Quality is basically the same.I have written a number of articles on these issues on my blog.
April 6th, 2009at 12:16 am(#)
Clement:
Well, it isn’t really that Comfi offers PC-to-phone service so much as their electronic phone cards are compatible with the X-Lite software. That isn’t really a substitute for a landline (the way Skype and Vonage (and to a lesser extent MagicJack) can be). It is also a little tricky (though certainly not impossible) to set up Comfi with the software. And with Skype you get a large user base to call for free, along with extras like the new iPhone app . . .
http://tech.spotcoolstuff.com/internet-telephone/skype-apple-iphone
All that said, if you place a lot of international calls and are looking for the absolute most rock-bottom rates then Comfi is absolutely something to consider. Thanks for mentioning it!
April 13th, 2009at 3:03 pm(#)
One of the problems using Skype for emergency calls is, that 911 or (112 in europe) cannot locate the call to a specific address or area, like they can with a landbased or even a mobile phone.
April 13th, 2009at 6:40 pm(#)
Thanks for a great review. I have used Skype for 4 years. I use it to teach English as a second language and the full screen picture feature makes it feel like you are really there with the person. I use a cell phone for incoming calls and when away from the house. I think I only pay about $23 per year for unlimited calls to any phone in the US and Canada with Skype. Another thing that is great with Skype is that you can send URL’s to the other person and they can be on the same page as you.
April 16th, 2009at 8:03 pm(#)
Am thinking about switching land line multiple office and fax lines to Vonage in the somewhat likely event that I move to a new office space. Have had this business phone number for over 25 years and do not want to lose it. Is Vonage my best bet and can I use it with busines phones designed to place calls on hold or transfer calls to different voicemails or tranfer a call to the boss’ phone? Help an old secretary out will ya guys. Need a relatively quick answer to make my decision asap. Thanks!
April 18th, 2009at 7:42 am(#)
Cindy:
For business purposes Vonage is absolutely your best bet. You do NOT want to run a professional office on MagicJack, Skype or Ooma.
We don’t want to say that EVERY phone will automatically be able to transfer calls right out of the box. But all should. And most will. Vonage actually has decent tech support, so you can order the system and then get some help from their customer service if it doesn’t work the want you’d like it to right away.
Hope that helps.
April 26th, 2009at 4:08 pm(#)
Thank you for the review. I got your site searching in Internet about Magic Jack. I have owned and used one for three months now. I think it is great but I usually get very bad audio quality. Also sometimes people complain that when they call me the line is busy and IT IS NOT. This happens a lot. My question is this: I do not have a direct connection to high-speed Internet, I have a PCI adapter with which I get the signal from my landlady’s connection. Could this be the reason why I am getting such bad audio quality? Thank you for this forum.
Diana
April 26th, 2009at 5:17 pm(#)
Diana,
It is interesting that you’d write of MJ “I think it is great but I usually get very bad audio quality.” I think that’s a sign that you are setting your expectations way too low. The quality of VoIP calls might be more inconsistent than landlines, but you should usually be getting *GOOD* audio quality. If you aren’t, something is wrong.
You can absolutely use VoIP services over wifi. (We do it all the time here at SCS). The reason for your low call quality might lay with the quality of your landlady’s internet connection, might be because the internet connection you are using is being overtaxed (if you are piggybacking off of it maybe others are too?) and might because of the quality of your computer. But the first culprit we would look at is the MagicJack device itself.
What I’d do if I were you (assuming you have a computer with a microphone and speakers) is to sign up with Skype, get a $10 credit, and call some of the same numbers you were calling using your MJ and compare the quality. If the call quality is the same with Skype then that’s an indication that the problem is probably with the internet connection. If the quality is better with Skype then you might want to consider signing up with them, or maybe getting an ooma:
http://tech.spotcoolstuff.com/internet-telephone-versus/ooma
Hope that helps.
May 5th, 2009at 3:41 am(#)
Hi,
Do you all know of T-mobile’s cell-phone VOIP add-on service for $10 per Month? When I cannot place a cell call on its network, which was true at one of my houses and at some other locations, I find a near-enough high-speed internet line (cable or DSL) and I can always place a call. T-mobile did call this service “Hopspots at Home.” Now “Call Anywhere” [there is wifi].
It is very reliable on my blackberry. Uses obviously just a handful of its cell phones, but it is VOIP + a cell phone (which none of the other runner-ups are). And T-mobile has 24-7 customer service, which is very responsive. It wiil also for another $10 per month let a customer attach a landline-like phone to a home high-speed network, so that those staying at home can have the advantages of VOIP for $10 per month.
T-mobile, with all of its Hotspot locations and with so many libraries and diners and hotel lobbies wi-fied, has a gold mine here, which has distinct advantages over questionable-service MagicJack, Skype (largely need a computer, set-up and pay $3+ per mo (no 24/7 from a national/worldwide co.– T-mobile is owned by one of the biggest European phone corps), and Vonage (almost $40/mo).
Needed: T-mobile must advertize much more its cell VOIP add-on, its landline Voip, and get 3G asap spread around soon (Has it in big cities like New York and DC). [It has Google's G1, too.]
Is all this news to the editors and this audience?
Joe di P
May 5th, 2009at 4:08 am(#)
Hi, again,
A friend has a solution to the 911 dilemma, for “Skypies.”
Get an old cell phone, with a charged battery, and by law, even if it is not connected to a carrier, it must be able to contact “911″. I assume if it isn’t too old. we got to try this! Of course, a new one will, too.
So, as the teenies in my day said, “no sweat.”
I am experimenting with MagicJack, and it sends one emails if one’s calls are not answered. A friend and I will check on whether incoming calls or outgoing calls — he swears by MJ — leave voicemail, when one of our computers are off.
As long as I hold onto that code to completely expunge MJ, cited in your article, if it is a scam in the end, I will keep testing, and if the testing is good, STICK. But if it will not hold voicemail unless my laptop is on, no may, MJ.
And if Skype is good mainly for its good foreign rates, since I make no calls to exotic lands, I’d get it only if I traveled again in Europe and outside the US again.
****Is it also good for calling back to the US?
WHERE would I learn its full rate structures? All its plans?
But if Sk is good only for calls from US out, it ain’t my baby either.
Many thanks,
Joe di P
I then got my baby in T-mobile’s “Hotspots at Home” if MagicJack proves to be a Scam or has no voicemail when my laptop is off.
*** What if it is asleep or hibernating?
Joe di P
May 5th, 2009at 5:07 pm(#)
Hi Joe,
Thanks for sharing this info.
We knew about the $10 VOIP add-on from T-mobile. Honestly, the service seems limiting to us. You need to be a T-mobile customer + subscribe to their hotspots add-on service (which is itself $20/month). On top of that, you can only use the service to call within the US (you can’t use it to call to Germany or from a T-mobile hotspot in Germany, for example) and one of the main advantages to VOIP is international calling. So, really, for the extra $10 a month what have you gained? Yeah, you are saving some minutes by placing some calls via the ‘net that you’d otherwise be making over the cell network. But for the extra $10 you could also get a plan with more minutes. Eg., I could get another 500 cell minutes with a plan that’s $10 more expensive than the T-mobile plan I have now. So, for the $10 VOIP add-on to be worth it I’d have to make more than 500 minutes worth of calls entirely within T-mobile hotspots. There are certainly some people for whom that’s a good deal. For most people it isn’t.
We didn’t know about the landline-like service from T-mobile. You need to be a T-mobile cell phone customer to get it but, from the bit of research we just did on it, the service sounds interesting:
T-Mobile
As for Skype:
It is great for calling back to the U.S. when traveling. In fact, we just wrote about this in our review of great websites to use while traveling . . .
http://web.spotcoolstuff.com/best-travel-websites-during-a-trip
You can find out all about the service at the Skype website. The nice thing about Skype is that you don’t need to sign up for any monthly service plans. Simply buy some Skype credits before you leave on your trip and you’ll be all set. The credits don’t expire. You can buy as few as $10 worth. Rates to call back to the U.S. depend on where you are calling from. From Germany, for example, it is 2.1 cents per minute. So, a mere $10 in Skype credits will cover nearly 500 minutes of calls from Germany to the U.S. It is a great deal.
BTW, your friend’s 911 solution misses the point a little. You can use Skype to call the police. The problem is that the police dispatchers can’t track the call. (They can’t track the call with an old cell phone either). By contrast, let’s say you call 911 through Vonage and are unable to speak (or maybe you have young kids who call). The dispatcher will instantly know your home address and will be able to dispatch help.
May 6th, 2009at 4:00 pm(#)
I just finished a 3-month ‘test’ of MJ and have switched back to Vonage. This is truly an instance where “you get what you pay for.” The idea of no monthly bill and my inner geek compelled me to try MJ and I was very disappointed.
1) Bandwidth issues: We have terrestrial wireless in our part of the world; 1mb upstream 756k downstream. Not robust enough for MJ. Dropped calls, choppy sound, generally very poor sound quality. Got our new (snappy!) Vonage device today and calls are crystal clear.
2) Green issues: We are very mindful about cutting corners with our monthly bills. Leaving the PC on all the time is not in our program.
3) Software compatibility: MJ has a meltdown whenever I watch programs on Hulu.com or Netflix.com, or when using my DVD copy software. For me, this is a deal breaker.
4) Caller ID: MJ shows the number, but doesn’t tag it. Very inconvenient.
5) Call forwarding: MJ’s very simple call forwarding does not compare to Vonage, which allows simul-rings to multiple numbers. Another deal-breaker.
I really, really (really~!) wanted MJ to be the solution for me. The impact to my PC was profound and I didn’t want to pay extra $$ to go to the next tier of bandwidth, which would negate the savings.
I’m very glad to be back with Vonage, their live body customer service, quality and features.
May 11th, 2009at 6:58 am(#)
I was kind of shocked that you recommended Vonage.
While I guess they would be the closest to a land-line replacement, I also think Ooma is probably a better option in those terms.
However, when discussing VOIP I think the major key factor is cost. Vonage is $25/mo plus taxes.
I personally use Skype, I picked up a VOIP841 for $99… I needed a new house phone anyways so I ended up with a pretty nice phone actually. It works as a dual-phone, so if 911/emergency/internet goes out calling is important, you can keep a $13/mo basic landline hooked up and access it easily via the same phone. No computer required either.
And Skype runs roughly $5/mo for unlimited north america. That less than 1/5 the cost of Vonage and a huge savings difference, even with a basic landline at $13.58/mo from AT&T and the Skype service, I have vastly better and more secure/safer communication at my home and abroad and STILL costs $6+ less than Vonage.
Skypes software I believe supports up to 24 callers as well, this can be invaluable to many people- I use it for Business and do regular conference calls that I can manage on my PC, with crystal clear quality.
I think being a regular skype user and turning your friends and family onto it have it’s advantages also, I can my skype to skype calls as well as regular number calls from the same software.
You can also travel with a WiFi phone, just connect it up to the hotels WiFi and voila, have your Skype wherever you go.
I really don’t see the value in Vonage at all.
My only gripe with Skype, is that the price of their dual-phones fluctuates so drastically, their current one runs $189.00- Skype really needs to readjust their marketing goals- come out with a $50-$75 dual phone and really push their service as a home phone replacement.
Nice review though, regaurdless of your poor choice for a winner.
May 13th, 2009at 3:28 pm(#)
Ryan:
Thanks for your thoughtful comments.
We are big fans of Skype, don’t get us wrong. (We use it ourselves). We selected our “winner” based on which service could best replace a landland. That’s Vonage for the reasons we outlined: use of all your old phones, use of your old phone number, 911 calling, etc. None of those are true of Skype.
As you noted, when considering the cost of Vonage vs Skype you have throw in the price of buying new Skype-capable phones. We actually did a review of the best Skype Phones—the desktop phone we liked most costs $190, the budget version is $80. In my house there are five phones; replacing them all with Skype ones would get really expensive. (And we still wouldn’t have 911 calling after, which isn’t ideal with little kids in the house).
Your thought of combining Skype with a normal telephone co landline is a good one, especially where you are. $13.38 is cheap for a landland. (I suspect you are not counting the taxes, and extra fees in that). Where I am, a local phone co landline is $21.95/month. Once you add in all the various taxes and fees the true cost is nearly $30/month. And that doesn’t include anything but local calls. Vonage is $6 less than that, plus you get unlimited long distance calling in the U.S. and to several countries (England, etc.). So, that’s where the value of Vonage is.
BTW, we wrote up ooma in a separate review:
http://tech.spotcoolstuff.com/internet-telephone-versus/ooma
Thanks again,
~ SCS
May 19th, 2009at 11:46 pm(#)
if AT&T’s DSL was 100% stable (in Sacramento area, to be precise), I’d switch to Skype (using NO COMPUTER E-net to phone adapter, like Linksys PAP2T, btw).
BUT, when I have some i-net outage (e.g. modem died 2 times in 2 yrs, or DSL died on their end couple of times …) I’d be left WITHOUT phone, cell’s have other issues – battery is down (or wife cannot hear it when it is in her bag
).
So, just for the peace of mind I’m keeping my ~$14/mo AT&T’s landline (without CallerID though) … all VOIPs are not protected from i-net outage, and it is much more probable than landline outage. Just don’t make long distance calls from your land-line …
-Max
June 6th, 2009at 4:14 pm(#)
This was one of the best reviews I have ever read. It is informative, unbiased, and honest! I have been contemplating Magic Jack for weeks now and this review has settled the issue for me. Unless they change some of their current operating requirements (i.e. ads on your computer and the collection of data from personal phone calls),i will not buy their product. It’s too bad, though, because they have a good idea, they just need to fix some of their weak points.~Larissa~~grateful for an honest review~
June 13th, 2009at 7:18 pm(#)
Good review… I would like to see it expanded to include Packet8… I have been using them for quite a while, and they seem to work very well.
I would like to see them compared to Vonage.
I almost tried the MagicJack, but will avoid it after reading some of the user comments here.
thanks.
June 16th, 2009at 5:26 pm(#)
Thank you for the review. I’ve been looking into all three products for a home business, and this has helped a lot. I also appreciate your politeness, even when people disagree with you. Your review becomes much more convincing. I think Vonage is the way to go. Thanks again, all of you.
June 19th, 2009at 11:25 pm(#)
recently got a magic jack
now phone wont ring
when it does ring it is very low
barely audible
any suggestions would be appreciated
July 19th, 2009at 7:14 pm(#)
My Friend knows how to make the majicjack where it does not need to go through the computer at all just have an internet connection. Anybody heard of that??
July 20th, 2009at 2:15 pm(#)
Hi,
I’m interested in selling the MJ in South Africa and was wondering whether it will work in South Africa and what challenges would I face if I was a reseller in SA? Appreciate your thoughts.
Suresh
July 22nd, 2009at 9:28 am(#)
skype http://www.skype.com/legal/terms/fair_usage/
July 22nd, 2009at 9:30 am(#)
http://www.skype.com/legal/terms/fair_usage
fair usage, than charges…. what does it mean?
August 2nd, 2009at 4:20 pm(#)
Your review was fair and accurate.
As an international traveler to Africa/Congo, I prefer and use Skype.
The purchase/rent of local number makes it easy along with an annual US and Canada plan. I can make a free call to a local US/Canada number from Africa. The reverse is true. Anyone can call a local US number and reach me in Africa. And anyone from Africa can reach me via Skype even if I am not online.
Also, Skype has a video calling option. Skype can be accessed from my cell phone via a mobile/cell phone application.
Finally with 3rd party software, I can record interviews over voice and video calls. Therefore, Skype offers lots of semi-professional business capabilities.
August 5th, 2009at 6:49 pm(#)
I have used MJ for a year and have been very happy with it. RARELY does someone mention “we have a poor connection” – maybe One of 100 calls.
For some reason my MJ goes dead when using Skype – but comes alive when Skype is off. Anyone know why?
Thanks,
Bill
August 17th, 2009at 11:29 am(#)
I’ve been using Vonage for 3 years and it’s been great. I bought a magic jack for the SOLE PURPOSE of using it in Europe for a week. My Verizon CDMA phone won’t work there, and I wanted an easy way for my kids to get in touch with me without dialing confusing (to them) international telephone codes. I figure with the time difference, there are only a few times a day which we would be able to talk anyways. I don’t mind leaving my laptop on all night knowing my family can call me if an emergency arises.
August 19th, 2009at 4:33 pm(#)
Rick,
Thanks for the comment.
I’m glad that MagicJack worked out for you. For others, though, if your goal is to have a communication during a vacation in Europe we’d recommend Skype instead. With MagicJack you have to buy the device and bring a phone and cord with you. Skype is not only less expensive and higher quality but doesn’t require any extra gear (provided your laptop has a microphone (and if it doesn’t headsets are cheap and light).
Of course, if you really want to be contactable 24 hours a day in Europe in case of an emergency, a better solution would be to get a cheap unlocked GSM cell phone, buy a SIM card after you get to Europe and then email the number to friends and family back home.
August 20th, 2009at 4:18 pm(#)
I am in the military station in Germany and is using Skype;
SKype is great for military pesonnel; I have friends that is station in others countries like japan, korea, and Quatar; I hAVE NO PROBLEM KEEPING IN CONTACT WITH THEM AND THE SOUND QUALITY IS GREAT. I purchase a Skype phone off Amazon for 49$ and its plugs into my laptop threw a USB connetion and it is wireless. I also can tell you that Skype is great when you want to make video call the picture quality and sound is great and only about a 2 second delay on the video. If you have friends station aroud the world and they have a hard line you can reach out and touch them; I am int the process of odering the a phone skype phone from amazon as to where you don’t even need a pc just and WIFI HOTSPOT and you are on you way all you would need is a Skype account.
August 25th, 2009at 8:37 am(#)
Thank you folks!!! I’m not a smart man, disabled and all… Well, you are kind, wonderful, HONEST people… After I read your review, anyone who buys “Magic Jack” would have to be out of their mind!!! I pity the poor folk who just “jump” into things without reading up on them!!! Vonage is CLEARLY the one for me!!! (and anyone else with any sense!) You folk are wonderful, and I will use your service everytime I need to check something out!!! God bless each and every one of you!!! I just “bookmarked” you folks!! I want to keep you handy!! Good folk…
Jim
August 27th, 2009at 10:58 am(#)
Great reviews, but I don’t think you can call any one service the “best”- people are looking for different qualities in a service. VoIP service varies ALOT depending on your geographic location (like cell service) so users should still sample different options before settling on one.
August 29th, 2009at 10:09 am(#)
Mary,
Agreed, no one product is ever across-the-board “best” for every consumer. This is why we gave all the info we based our analysis on in our review.
That said, if your goal is to replace your landline with a VoIP service that operates as much like your current landline service as possible then of these three options we are rather confident that Vonage is the best choice (of the three services we compare here). Of course, different people have different goals when it comes to these products.
August 31st, 2009at 5:21 pm(#)
Just sent two Magic Jacks overseas. One son in Korea and one son in Japan. Received a call last night from a local area code and talked to Japan. the reception was easily as good if not better than my Verizon landline. Magic Jack may not be the end all but in our case, it was the easiest, fastest way to be able to communicate with the family. I do not expect miracles for 39.95 (price of Magic Jack)but so far the reception was miraculous. Our sons leave their desktops on all the time so the phone line is just another part of the computer.
We tried Vonage at home and their modem kept knocking my ISP off line. I would disconnect Vonage, the computer worked fine. Plug in the Vonage modem and poof-internet gone.
The bottom line is you get what you pay for and for me 1.70 a month for all of Magic Jacks faults, is worth it.
September 2nd, 2009at 9:56 pm(#)
This is a nice neutral standing article. Thanks. My 2 cents. Vonage has now come up with free calling to 60 countries. If you are an international person with family or friends living abroad or have international dealings, vonage will be the best. For that reason and several other things I am able do with vonage site and devices, if I get a little creative, I have stuck to Vonage. Though vonage price is too steep (more than 10 times) compared to majic jack, the features it provides is far better than any comparable service. If I were primarily interested only in local calls within US and Canada, I would definitely stay with magic jack as it is a great value for the price despite other issues. I would use Skype only as a free service and will not pay per minute for making calls from internet. I could use country specific calling cards instead. In fact I prefer not to pay per minute for any service. I prefer any unlimited option. The major issue with Vonage is the initial setup which invariably is painful.
September 3rd, 2009at 11:18 pm(#)
I’ve been using MJ for over a year now and I love it! I so agree with Rob, “The bottom line is you get what you pay for and for me 1.70 a month for all of Magic Jacks faults, is worth it.” It works great 98% of the time and sounds just fine with my MS VISTA laptop and high speed cable connection. Had some off/on issues with XP but so far with VISTA, works like a charm!
No, it’s not perfect but for that price, you can’t beat it! I just received a call from another MJ from Thailand last night (to my MJ) and it sounded just fine and not having to worry about either one of us paying per minute for the call was nice.
I’m just now looking into SKYPE and when my parents get a webcam too, I’ll sign us both up so they can see their grandson when talking with him.
BTW, call forwarding from MJ to my Verizn cell phone and VM when MJ wasn’t plugged in works perfectly for me too.
Thanks for your great reviews here!
September 7th, 2009at 1:43 am(#)
Excellent article! I found this to be very informative. As someone who works at Best buy I have seen the Magic Jack multiple times and have recently been curious about the quality of the product. This article really points out all the facts about the top VoIP services.
September 8th, 2009at 5:53 pm(#)
I just found out about Magic Jack today. I am in the process of starting a business that I will be doing from home but will be out on the field most of the day. I am trying to save all the money I can, and adding a new LAN line costs more, can’t use my cell because it has an out of the area code and I’m afraid clients will not recognize it. I basically just want a number for clients to call and leave messages. I will be working out of my laptop so there’s no problem having it on the whole time.
Does having a Magic Jack sounds good? Is anybody using it for business?
Would love to read comments and advise.
September 10th, 2009at 12:00 pm(#)
Stella,
First, just to clear something up, you mentioned that “adding a LAN line costs more.” With every VoIP service we know of (not only Ooma and the three we review here but Verizon, Comcast, etc.) you don’t need another LAN line–assuming you don’t have dial-up, whatever internet service you currently have (DSL, cable, etc.) will work. Even DSL provides a large enough pipe for you to talk on the phone and surf the web at the same time.
Based on how you described your needs, Skype is absolutely your answer!
First, you can get a number in whatever USA area code you want. I’m not sure what sort of business you are in, but if you work internationally you can also get a local phone number in a handful of other countries (eg. your business could get local New York, local Chicago, local Toronto, local London AND local Sydney numbers, for example).
Second, Skype has free apps for many wifi enabled cell phones (eg. the iPhone, Android phones, several Samsung, Nokia & LG models, etc). If you are running the app and in a hot spot your cell phone (and/or laptop) will ring regardless of which of your Skype numbers clients call.
Third, the Skype voicemail system is fantastic. When someone leaves a message you’ll get an email that includes the number the message-leaver called from.
Fourth, the Skype call quality is superior to MagicJack.
Fifth, Skype is much more scalable than MagicJack. Let’s say you set up a central office in the future—Skype can easily be expanded to accommodate multiple lines, or call forwarding, or other more robust business features.
Further, cost-wise, Skype is compatible to MagicJack. MJ is essentially $3.33/month ($40/year) for the first year and $1.67/month ($20) thereafter (and you get all the drawbacks we describe in our review). If you get a year subscription with Skype’s unlimited USA & Canada plan that costs $2.50/month.
So, in your case, Skype is the answer. 100%.
September 17th, 2009at 7:02 pm(#)
Thanks for your comment, Kris. For the record, we didn’t find Vonage painful to set up at all. It does take a few minutes longer than Skype or MagicJack though.
October 5th, 2009at 3:39 pm(#)
Why pay $25 a month when you can do it for $20 a year? If you can use Yahoo messenger, it’s free, voice and video.
October 6th, 2009at 4:00 pm(#)
Skeptic,
Well, in your situation you very well might not want to spring for Vonage. But if you are looking to replace your landline phone with a VoIP service that has all the same functionality then you can’t do that for $25 a year. Yeah, there’s YIM but you can’t dial phone numbers on that. You can get the MJ for $40+ and then $25 a year, but your computer has to be on and you’ll have all the privacy and other downsides we discuss in our review. You can get Skype for $30 (plus the cost of your Skype phone) but you won’t have emergency dialing and will have to change your phone #. (Of these three services, Skype is the one I personally like most and is the one I personally use on a daily basis). Or there are other options, most noticeably the Ooma (which might end up being the best of them after their new Telo + handset is fully launched).
All the VoIP options are a bit different so which you go with depends how you personally prioritize the pros and cons.
Of course,
October 7th, 2009at 6:55 pm(#)
Thanks for an excellent review and responsible follow up comments by all responders, excellent and useful. I am probably not too bright, but here goes. #1 It sounds like the PC must be on for MJ to leave a voice mail, or if my PC is off the voice mails are saved to emails or some other way? #2 If PC is off does MJ forward to my cell? #3 I have a brand new laptop, I would HATE to mess it up with the reported MJ privacy and the uninstall issues. How much damage could a bad MJ experience really do to the new PC?
Thanks again to everyone for one of the most responsible guides to new tech specifically VOIP options!
October 9th, 2009at 1:10 pm(#)
Thanks for the great, detailed review! a friend mentioned Magic Jack so I thought I’d check it out to see if it would be a good replacement for Vonage. I got Vonage when my son was stationed in Germany. He’s back in the States now but having another phone number to give out, other than my cell, is pretty handy. After reading your thorough review, I too, will be sticking with Vonage. The call quality is excellent, I LOVE being able to listen to my voicemail either directly from the phone or emailed to me & listed to from my computer! Vonage customer service has been outstanding! There were a couple of minor problems at the beginning of service & they went above & beyond to rectify the issues.
Thanks!
Vicki
October 13th, 2009at 8:05 am(#)
I was Googleing for the above information when I came across your website. All I can say is “WOW!!!”…job well done.
Thank You
Bob
October 14th, 2009at 4:43 pm(#)
What is the best service when your internet connection is via DSL service provided by the local phone company, and said phone company REQUIRES you to pay for a phone line in order to have DSL service?
October 18th, 2009at 12:03 am(#)
We have been using Vonage for a a month or so and have been very pleased with phone and customer service. This review was extremely helpful when deciding to switch telephone companies.
My question is however do any of you know of a similar company in Europe? Vonage is a great way for my family to call me while I am out of the country but I would love to know if there are any other services out there that work in a similar way elsewhere.
Thanks
October 21st, 2009at 4:06 pm(#)
I really appreciate the quality and the fairness of your reviews. I am venturing into these alternative types of services, and you have made my decision much easier. I want to compare Ooma and Vontage, but will go with one of those. In this age of hype and extreme views on virtually everything it is a real pleasure to enjoy the quality of your work, and this comes from one who has been an elected official and is still active in the political process.
October 23rd, 2009at 10:36 pm(#)
You can use Skype with your traditional phone, even in a normal cellphone (the most basic cellphone). To use with a traditional phone, you just need a USB-RJ11 Adapter, it is very cheap. Here a couple of examples:
http://www.copystars.com/d-link_dph-50u_skype_usb_phone_adapter_1_usb_2.0_2_rj-11_pstn_48560_prd1.htm
http://www.micon.com/VoIP.shtml
All the phones in my house (7 phones) are connected to the Micon device, so I can call to any place in the world for paying a convenient price a year. Also I can use a normal cellphone (not an Iphone or things like that), actually a Nokia of USD$10, and call from my cellphone to any place around the world
… I can do almost the same with Google voice, but Skype is far better.
So the magic jack is not new at all.
October 23rd, 2009at 10:42 pm(#)
I forget to say
You can also have a land line number with Skype and receive the incoming calls in any phone you establish in Skype, even you can forward an incoming call to multiple phones.
I have a phone number in my home country, so, my family and friends can call me without having Skype to this number paying local cost. Of course, if they have Skype, they can call me for free.
November 18th, 2009at 5:07 pm(#)
WOW. Good job Cool Stuff. I have been looking for some comparation between Vonage and Skype and found you have the best review among all.
Still unclear on some functional issues with Skype and if you can help me see thru, really appreaciate:
1) What happens to incoming calls, I mean from tradition land line or Cell phone? People can’t call to Skype unless you have a Skype phone?
2) How Skype phone works? Just like a normal phone, receiving and calling out? Computer must be fully ON? How about if it is in Idle?
3) What is Skype phone numbers like, 3 numbers for Area code and another 7 digit numbers?
4) I have an iPhone, how does it work with Skype? As I understand: Must be at WiFi zone, calling out to any land line phones (for free) or cell phone (with a fee), no difference as in the US or abroad. Is this correct?
5) At WiFi zone, without my computer, can my iPhone receive calls, I mean to my Skype name (account)? Same as in the States or abroad?
Thanks.
November 27th, 2009at 10:40 am(#)
I have had Vonage for at least 5 years coming over from Packet 8. I use it for outgoing calls for my small business and have it running thru a small phone system here in my office. I also added a fax line for $10/month. I have only used Vonage thru a high speed connection (currently FIOS) and for the most part have had limited issues with connectivity or lost calls. On rare occasion I have had echo issues, but hang up and call back. For a business though that always made me concerned. That is why I kept 2 Verizon landlines for my business, one of which, my main office number, rolls into the 2nd in case I am on a call, so I can juggle multiple calls.
Like so many others, my business has taken a good hit this year. I am looking to cut more costs, and the phone is a good place to look. I have 4 lines now, 2 verizon, 1 vonage phone and 1 vonage fax. If I convert my main business number over to Vonage, I know I can, can I use the 2nd as a rollover setup? This is a home office setup, and I cannot afford tech issues, reliability issues, etc. Would it make sense to look at Skype or Packet8 or another VOIP provider? I could cut back one line, to make it 2 lines and a fax to cut costs. I currently pay $110 or so for Verizon, and another $48 a month for my Vonage setup. Thoughts???
I also pay $75/month for my 1 house phone line with a FIOS internet connection.
November 28th, 2009at 5:34 am(#)
I am researching the best option for me and my boyfriend. We are currently using yahoo to place calls back to the states. We are living in Kuwait and our internet service uses a USB plug-in device that plugs into our laptop; we don’t use wireless modems here. Will Vontage work with our setup? I know magic jack will, but I have some privacy concerns after reading your article. Thanks
November 30th, 2009at 4:28 pm(#)
I use Skype, but recently I noticed that they charged me a lot more than what they claim to charge in their International Rates. I try to reach customer service, but is impossible.
I was No.1 fan, but I am doubting Skype now.
December 2nd, 2009at 7:52 pm(#)
I am confused about the Skype phone. Does it plug into a wall jack or into a computer via USB? Is it bulky/heavy?
My situation: I will be traveling and working globally for the next few months, and need a consistent phone number where I can receive calls from clients and colleagues, no matter where I am. My accommodations (apartment sublets in various places) may not always have pre-existing landlines, so not sure if Vonage is right for me. And, I would prefer to need as little equipment as possible, just an internet connection and maybe a headset. But I need really good quality, the ability to make and receive calls globally, and reliable voicemail service. What plan do you think is best?
Thanks!
December 10th, 2009at 10:12 am(#)
I used to use Vonage and switched to MagicJack… if want to save money, then MagicJack is the way to go ($20 a year) but if you want a little better quality and more features then Vonage is the way to go. I cannot comment on Skype since I have never used it, although it seem to be somewhere in the middle (cheaper than Vonage, but more features than MagicJack).
And just a correction on the chart above:
Yes you CAN call into your MagicJack voicemail even when your computer is off or MagicJack is unplugged… you just call your number and it will go straight to voicemail, and when you here your voice message then hit * and then your password.
December 15th, 2009at 4:04 pm(#)
I have been using Magic Jack for a year now, as a matter of fact, I need to renew the contract but I am very hesitant because of the following issues. You constantly loosing your contact on the other line in the middle of the conversation, you have to constantly re-running the program and almost always have to re-dial the phone number you are calling because it does not go through on the first dial. Thank you to Spot Cool Stuff Tech for doing these comparison regarding internet phones.
December 18th, 2009at 3:16 pm(#)
Thank heavens for this page and all your fantastic comments. People say when something sounds too good to be true it generally is. I am 65 and crippled and on social security only because my former employer pulled a scam himself and no-one has retirement funds.
If I would have gone with all that infomercial hype I would really have made a horrific mistake.
Occasionally I do buy something off an infomercial, but check out customer comments, evaluation organizations, etc.
December 18th, 2009at 3:22 pm(#)
Sorry, I forgot to mention in my message above that I was talking about MAGIC JACK.
December 20th, 2009at 8:54 pm(#)
I am thinking of getting Magic Jack but need an answer to this question first. My primary use would be to call into conference calls that require me to enter a code. (Which is another version of the scenario where at automated answering system tells you to press 1 for English, press 2 for whatever, etc). Can Magic Jack handle this? (I read a comment somewhere that says Magic Jack will multiply any ‘extra’ digits -that is, numbers that are not actually part of the phone number -by 2 which messes everything up.)
January 6th, 2010at 11:04 am(#)
Thanks guys I have Vonage and was thinking of going the ultra cheap route but from these reviews I think I will stick with it. I could not take it if I were on hold for an hour or long and my phone just disconnected.
January 9th, 2010at 1:57 am(#)
Hello All,
I found this review very well thought out and well put. I am currently researching multiple options with Skype. I have used all three of these services now for not only personal but also business use. Here is a list of services I have used…
Landline, Cellular, YahooIM to Phone, Vonage, Magic Jack, RingCentral, and now Skype!
I will have to say by far I am the most impressed with Skype. As one of my business partners I have done FREE Skype-to-Skype calls says’ “It sounds like she can reach out and I am in the same room!” I would say the same of hers!Read more below under SKYPE!
Here are my personal opinions of all of the above:
Landline: Old Hat and nowhere near competitive or flexible!
Cellular: Over the last couple of years I have actually just been using cellular phones for personal and business. In fact I find that my clients prefer my cell as they can text me as well as call me and they feel confident they will reach me, even if I don’t answer. I found that when I had my $15,000 Professional phone system and when people couldn’t reach me there, even though they could leave a message, they would call my cell anyway. So nonetheless I am allowing my clients to feel less like they are chasing me down when they call and leave a message. (I answer most of the time, LOL) Overall in this new economically conservative era we have entered (at least that is how we consumers are responding to the economic climate, even though the gov thinks they can spend their way out of this…) I am looking for more ways to save and simultaneously improve communication quality! At this point I have two numbers on my business card. 1) Office which is an 800# that forwards to my cell and 2) My Cell # / in the end everyone reaches my cell, so up front no loveloss on my level of professionalism, and those that call both quickly realize my 800# calls my cell when they get me both places and they then call my cell direct. Yes the 800# does cost me $0.02 per min when they call me, but the professionalism is worth it.
YahooIM to Phone: I did this as a temporary solution back in 2006 when I moved my office, didn’t have a landline set up yet as the ultra convenient local phone company AT&T couldn’t get out there on time. At the time I didn’t have one of those great new unlimited cell phone plans so I was watching my minutes. Being a big user of YahooIM for the Instant Message aspect of office to office communication, I then saw the ad for calling landlines for free or reduced after free min ran out. I will have to say my experience was this went well on the limited occasion I used it and the people I called always got a kick out of the caller ID always showing us as 777. Someone once said to me that they thought God was calling them? LOL Overall no one could call me at 777, and today and as of late I’m not even able to use this service, it is grayed out in the program? I know I still have min as it was only $0.02 per min…
We have also used Vonage for the last couple of years as we moved to using cell service we didn’t want to lose our landline number that we had and as the review states it is the only one that you can keep you existing #. In the end now that we have done the cell thing for the last couple of years and I have branded my Cell & 800# as my numbers noone even calls my Vonage line anymore (of which I have forwarded to my cell also) So we are getting rid of it and the number soon as I finalize my latest setup that I feel is going to trump all.
MagicJack was a very exciting opportunity as I had a few new agents that were not interested in using their cell phone as their main line as I do. So since we have computers at each desk all hooked up to high speed cable internet, so MagicJack seemed like an easy decision. The only thing I can say about this is two words, “Tin Can”! Every call I ever made from multiple computers with MagicJack I received complaints that people couldn’t hear me or my agents. Overall I guess MagicJack has one thing going for them! Their price is so cheap that people like me won’t invest very little time, or none in my case, at getting their money back.
RingCentral: This seemed like a promising option as I was hearing great reviews from other sources. On top of this I could set up four phone numbers on unlimited service with vm, call tree, unlimited extensions, etc for only $99 a month, also included a virtual fax to email. So all in all I was looking for this to be a great solution and I could cancel all the other items I was paying for and actually save money. Wouldn’t be a big help to me as I still use my cell for 99% of all of my business calls, but would be a great solution to get my mobile salesforce on the same system as we are all workign virtually over all 50 states. (Modern Business World)
- Problems I ran into with RingCentral were with the softphone (phone/dialing software for the pc) as it kept causing problems with my pc and the call quality was not there. Then on top of the hours I spent with customer service in Singapore with people who did not fluently speak my language, it was explained that their service being international works better in some places than others. So in the end it wasn’t worth the hassle and the agents ended up going to my cellular solution since unlimited plans are totally unreasonable on cell phones when you factor in the grief factor. I ultimately still like all of the bells and whistles that RingCentral has to offer and I might have been having more problems due to it being a slower pc that was having problems and me having install issues. After I installed on my laptop it worked great, but again people are using their cell mostly today so the expense didn’t make since, so we canceled it in Aug of 2009.
Skype is my current project under way… Having a growing sales force on a national basis I found myself entertaining the idea of RingCentral again as it has all of the professional features to allow our mobile force to stay connected. But before taking the plunge at setting up over 50 accounts I figured I would research other options. Over the last couple years I have had Skype come my way but never paid any attention to it, but due to a few business connections mentioning its use I began to feel left out! As you can imagine by my in depth details here, I like to be the source of info! So here I am, I have taken up some time over the Christmas Holiday to play with it a bit. By far I have experienced the absolute best call quality out of everything, including my cell phone, landlines, everything. No other solution has built in Video Conferencing, Oprah uses Skype, Instant Messaging, File Sharing, Screen Sharing, and prob other things I have not found yet! On top of all of this the base cost of FREE, oh but watch out they get you on the Unlimited Subscription to anywhere in the US and Canada for $2.95/month!!! (Sarcasm) Oh but then there is $4/month they charge you for a call in if someone wants to call you! So to have unlimited in and out and everything else you have to pay a whopping $6.95 per month! But the review does mention that you have to buy a Skype phone! Well you don’t “have too”, you can choose too, as you can use the software and your speakers, headset, and mic on your computer. I do think the Skype phones are interesting as they work off the wifi network in your house. (Time to through out that old cordless phone anyway…) The biggest thing that intrigues me the most about Skype is its Open Source / FREE Roots!
So why am I so interested in Skype since I use my cell phone so predominantly in my life? Simple, many people are missing the coming change of leveraging and eliminating of cell phone carriers. In fact Google just this week took a major step in Launching their first phone ever sold directly by Google without a carrier!
You see with tools like Skype and GoogleTalk you can actually leverage your internet connection to make phone calls! ALL WITHOUT USING YOUR CELL MINUTES! Yes you have to have an unlimited internet package on your phone, otherwise this would be cost prohibitive. So if you are thinking what I was thinking, this is a great way for me to continue doing what I have been doing, which is using my cell, but lower my rather expensive unlimited plan on my cell, allow my wife to no longer watch her minutes on her cell plan, and allow my sales force to do the same! All done without really adding cost but helping them and myself reduce cost! Remember we were talking $6.95 a month unlimited, let along the great savings it can pose for international aspects! If your plan costs anything like what we pay you are looking at easily a $50 – $100 a month savings.
So feeling very proud of myself at realizing how great and endless the possibilities would be with Skype I sat back and realized that it didn’t have any form of professional services I could with RingCentral? But I was wrong, you see I am also a relentless Google Search Pro and I was able to find multiple services that allow you to push your skype calls through solutions that add enhanced features like RingCentral. So now I set out to figure which was the best and most economical add on! The great thing about Open Source/Free solutions is the developers and home developers like to create solutions that work with them!
The solution I found to add-on to Skype is called Zaplee, and believe it or not they offer a solution that allows you to create a professional call tree, or even a home phone call system that costs only $5 per month for Unlimited Users! While this is a self hosted solution, if you want to beef it up and have professional service you can pay only $10 per month per user. So worst case you are up to $16.95 per user for Unlimited everything! Compare that too RingCentral at $99 for four numbers, that is a savings of $30+ per month! Plus I can save the other money on my cell plan, so with all of these savings I am actually doing this for FREE!
In all fairness RingCentral does have an app for the iPhone as they are the only app of their kind for the iPhone as Apple and AT&T gave Google the stiff arm on adding their app GoogleTalk! Hum I wonder if this played into Googles Swift action to bring their own Non-AT&T cell or maybe wifi (FREE) phone to market!
Now as it is also stated in the review above no one person can really make a clear recommendation on these products unless they are biased. But I have to say I can, as I have used all aspects of these services and I even have the ability to sell you any of these options through various affiliate programs I am enrolled. So you decide!
I just know that today it is about function & cost effectiveness and I believe that many of the contributions that open source developers create is on par or superior to that of other for profit companies may have brought to the market. Hence the competitiveness of Skype and the add-ons that are constantly being developed!
I will be posting an update to how I get this complete phone system setup with Skype and Zaplee, so check out my Blog and I will also post it to here!
http://www.ufam.wordpress.com
I will be amazed if this whole thing fits!
January 13th, 2010at 3:46 pm(#)
I have Magic Jack. I am not sure why there is so much bashing of this revolutionary product. All one need do is consider the price, because basically magic Jack is free voip calling. 19.95 for a year of service?! That’s $1.66 USD per month! I lose that in amount in my my couch cushions so to me that’s free… This is the only service that allows me to stick it to the phone companies outrageous fees. I also have skype on my computer which charges extra for just about everything. You even have to pay for a number. I can do the exact same thing with Skype as I can do with Yahoo messenger or MSN Messenger or any other messenger for that matter these services are indistinguishable. What makes MJ superior is I can use my cordless phone at home and make calls for virtually nothing and the quality of the calls is excellent. Skpye still has the robotic sound thing going on which i have never experienced from MJ. The price of MJ is too significant to summarily dismiss as many seem to have done. I’ve been getting calls from Liberia Africa and the call quality is wonderful and it didnt cost me a dime. Vonage was never an option, the cost is about the same as triple play package that you get from cable, which is what I’m trying to eliminate. I dont care what anyone else says Magic Jack is too good to pass up. they’ve just announced the same service for cell phones! c’mon guys admit it Magic Jack is the shit!
January 14th, 2010at 1:33 am(#)
Great review!
I still need to understand the different protocals of how each service works and what exactly is the method of the service I am paying for and why do I have to pay them anything at all!
Meaning, if I already have high speed cable internet service what are the different methods used to convert a conversation into a telephone call that will make someones phone ring and be able to communicate with me from my computer or my phone plugged into my computer or my phone plugged into a special modem that is then plugged into my high speed cable internet line, etc. Not so much from a scientific point of view but from a point of view as to what are my options and why do I need them and why can’t I do it myself.
Noteworthy may also be the question of, if any of these companies fail will I still be able to make calls using whatever I bought from them.
I want a generic system, does it exist?
It doesn’t matter who goes out of business the internet will still be there, generally, etc.
BTW, also noteworthy may be the discussion of the caps on minute usage by each of the services, “unlimited” may not actually mean without a limit!
I have read of a very great number of disputes with many services about this very issue. One service implies unlimited might mean 5,000 minutes a month, another seems to indicate up to 10,000 is OK and another has a formula that ends in their discretion…
Thanks for listening!
NaturalTV
January 14th, 2010at 8:41 pm(#)
I’ve had MagicJack for a couple months now. At first it was plugged into my PC (running XP) and I was using a cordless phone. Sound quality was horrible. Then i moved it to my Macbook Pro and used a corded phone, and it’s spectacular. I make all my calls from the Mac using MJ, but have incoming calls forwarded to my cell phone so I don’t have to sit with a corded phone. I’m now ready to give up my landline and save $35 a month.
January 22nd, 2010at 2:08 pm(#)
So, here’s my 2 cents… I already ordered the MagicJack *then* came across this article. Joy, I just wasted some bucks I thought, this is going to be horrible. I read one guy is disconnected for talking 2 hours a day for 3 months. Other’s complaining about quality. After some quick calculations, 120 minutes a day*30 days a month (give or take right?), that’s 3,600 minutes*3 months = 10,800 minutes in 3 months. Perhaps that is slightly excessive. Others complaining about quality, then you find out they are leeching wireless from who knows how far away, or have a poor quality internet connection.
I agree that the spyware is a bit much to take in, and I am very glad I read about that before installing. In my case, I am lucky enough to have multiple computers, so now that I know spyware is going to be an issue it is going on one of the spare PC’s. It can feel free to slow down the spare PC all it wants=)
With any luck, I will be one of the lucky ones who enjoys the service. If not, I rolled the dice and lost. As a current skype user, I can say I tend to be quite happy with it. I don’t have a phone number associated with it, but if magic jack doesn’t work out, I guess its time to get a skype #.
January 27th, 2010at 12:57 am(#)
I us Skype ( FREE ) for comunicating with freinds out of town, yes it mean if they do not log in I can’t talk, but maybe they are to busy. As far as the best one it depends what one meets the needs. I have some problems with droped calls but its FREE. It has cut down on the regular long distance charges.