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With the advent of broadband has come a new way to communicate faster and cheaper: voice over internet protocol, or VOIP in telecom parlance. The idea is that users make calls through broadband (DSL, cable, or fiber) data lines rather than traditional copper phone lines. In layman's terms, it's essentially a new way to make phone calls over the internet.

Recently I happened to see a television commercial advertising a new product called, "MagicJack." The advertisement explained how the small unit which plugs into your computer's USB port on one end and your home telephone on the other end saves you hundreds in phone charges per month.

The technology is called voice over internet protocol, or VOIP in tech lingo. And with the advent of broadband, it has become more popular as a cheaper alternative to traditional telephone service. However, VOIP does have two significant limitations: 1) temporary loss of service with a power outage; and 2) choppy sound when your computer is performing a memory-intensive task such as uploading a video to YouTube.

Skype & Vonage
Two popular providers for internet telephony are Skype and Vonage. With Skype, both users must be Skype callers. One cannot go outside Skype to utilize the free phone call capability of the internet. Vonage is more similar to traditional phone service, yet is cheaper at $14.99 per month for their Basic 500 Minute Residential Plan which includes every feature you could want, plus free long-distance. And if you want unlimited minutes plus free international calling, choose Vonage's Premium Unlimited Residential Plan at $24.99 per month.

The Money-Saving MagicJack
MagicJack has emerged as a major contender in the battle for the top VOIP telephone service provider. With an initial cost of only $39.95, MagicJack will provide you with unlimited local and long distance calling plus many other features for only $19.95 per year (you heard right, per year). So intriguing was the advertising that I had to check it out for myself.

The MagicJack promptly arrived in my mailbox only a few days after I ordered it. The futuristic-looking little unit also came with a USB extension cord in the packaging, which is a nice optional feature should you require it.

After plugging the MagicJack into the USB port on my new iMac, its software promptly loaded on my machine and prompted me to click twice to launch the MagicJack Softphone. I then plugged my cordless phone I've had for years into the other end of the MagicJack. But before

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