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Making phone calls online is becoming more popular by the day due to its lower cost, suite of features, and convenience. The service, called VOIP or voice over internet protocol, uses broadband data lines including cable, DSL, and fiber rather than traditional copper phone lines.

But how do you go about selecting a VOIP service provider, and what do you need to keep in mind when making phone calls online?

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Numerous VOIP providers are competing for new customers. Three of the top VOIP companies are Vonage, Skype, and MagicJack. Before jumping on the VOIP wagon, ask yourself the following questions:

1) Does the service offer phone number portability (can you use your current phone number)?
2) Is the phone service that much cheaper than traditional or cell phone service?
3) Will you get unlimited local, national, and in some cases, international calling?
4) How is the sound quality? Is there too much static on the line? Does the sound become choppy when you're performing a memory-intensive task on your computer?
5) Will you receive all-inclusive features including call waiting, caller ID, and voicemail?
6) Does the service have a workaround in case the electricity goes out? For example, Vonage will forward your calls to your cell or traditional phone.

But perhaps the best way to explain how to make phone calls online is to highlight an actual user's experience with one popular VOIP provider: MagicJack.

Installing and Using MagicJack VOIP Phone Service
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.

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