Over the weekend the Telecom Law Monitor, a blog from the telecom practice group of Washington D.

For a long time many observers were trying to figure out just how MagicJack made money. Well, this FCC decision really helps make things clearer. Well it seems the FCC agreed. That means that MagicJack's model of cheap no longer means, almost free or at breakeven to them, and brings to light the fact that they may now see the possiblity of losing money on every call without their sister company making a profit on the access charges which subsidized what they have been doing.

YMax was counting on users to generate enough traffic to make the virtually free outbound calling worthwhile, which meant keep MagicJack as the money loser and make the profit at YMax.

magicJack: A Canadian Review Of The Money Saving Telephone Device

Here's how YMax is counting on people making thier long distance to the numbers using MJ and while not part of this particular FCC action, calling local numbers too. They are also counting on MagicJack customers to place toll-free calls. With each call YMax generated revenue each time one was was placed, but the FCC decision means it will no longer be able to do so. So what does this mean? YMax probably will have to modify its tariff to describe the service in a way that allows it to charge for these calls.

If it is unable to accomplish that, the lowering of revenues from MagicJack customers as a result of the FCC order will present a real problem to the overall concept and profitability. Posted on April 11, at You can follow this conversation by subscribing to the comment feed for this post.

I'm waiting for MagicJack to get taken to court on their policy of not allowing FreeConferenceCall. Their conference calling isn't a bad experience - they have some clever product touches - but I thought it was a blatant regulatory violation to disallow access to specific numbers.

Alex Quilici April 11, at I wonder if this also applies to ooma. John Balogh April 11, at The letters and numbers you entered did not match the image. As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments. Having trouble reading this image?

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April 11, Over the weekend the Telecom Law Monitor, a blog from the telecom practice group of Washington D. Comments You can follow this conversation by subscribing to the comment feed for this post.

They instead redirect you to a no doubt provided by their CLEC. Verify your Comment Previewing your Comment.

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