by Daniel J. Gansle

Created on: October 11, 2008

VOIP, or voice over internet protocol, uses broadband data lines including cable, DSL, and fiber rather than traditional copper phone lines. In layman's terms, it's making calls over the internet. But just what are the benefits of VOIP service, and how does it differ from the good ol fashioned Ma and Pa Bells?

First and foremost, VOIP's claim to fame is cheap, unlimited calling. While no VOIP service is totally free, you can make calls through the internet anywhere between 50-90 percent less than traditional phone service depending on the provider. And calling isn't limited to local numbers, either; you can dial national and even international numbers for free on an unlimited basis.

You will never receive a telephone bill. You will have to pay a monthly or annual fee, but that's all there is to it. No confusing phone bills, no surprises. It's a great way to preserve those pricey, expensive minutes on your cell phone. But perhaps the best way to describe the benefits of VOIP is to describe an actual user's experience with a popular VOIP provider.

The Money-Saving MagicJack
Recently I saw 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.

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 I could place a call, I had to set up the MagicJack, choose a telephone number, and assign enhanced 911 (E-911) location data.

After initializing the MagicJack, I was ready to place a call. I was impressed to find that it is no different than dialing the telephone through traditional phone lines; and the sound was impressive save a little background static. And, I enjoyed making unlimited

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