Ron Schenone

MagicJack’s New Cell Phone Device – But Is It Legal?

Posted by on Jan 9, 2010 | 8 Comments

Hold on to your hats because MagicJack may be taking us all down a long legal ride which could provide us all with free cell service. Yes, you heard me correctly boys and girls. But before you run out and shout to the world, “I’m as mad as hell, and I’m not going to take this anymore!”, the teleco’s such as AT&T are going to fight this and it may not even get off the ground.

According to a recent article it states the following:

Already being called the “femtojack,” the $40 MagicJack version, unveiled and demonstrated outside this week’s International Consumer Electronics Show in Las Vegas, differs from the other femtocells we’ve seen because it isn’t sold by a wireless service provider. In fact, it’s a bit of a renegade. The Associated Press reports that the device piggybacks on the spectrum that wireless service providers have paid top dollar for – and that there’s little those companies can do about it.

The new magicJack uses, without permission, radio frequencies for which cellular carriers have paid billions of dollars for exclusive licenses. Isn’t that, um, illegal? Dan Borislow, CEO of MagicJack’s parent company YMax told the Associated Press that the new device is, in fact, legal because wireless spectrum licenses don’t extend into the home. Yikes

So how does the work:

The size of a deck of cards, it plugs into a PC, which needs a broadband Internet connection. The device then detects when a compatible cell phone comes within 8 feet, and places a call to it. The user enters a short code on the phone. The phone is then linked to the magicJack, and as long as it’s within range (YMax said it will cover a 3,000-square-foot home) magicJack routes the call itself, over the Internet, rather than going through the carrier’s cellular tower. No minutes are subtracted from the user’s account with the carrier. Any extra fees for international calls are subtracted from the user’s account with magicJack, not the carrier.

There is one issue that needs to be addressed. Only phones that are GSM capable work with the device. These are usually from AT&T, T-Mobile or older Cingular phones with a sim card. Verizon and Sprint phones will not work.

What is interesting is that the folks at MagicJack seem to have found a loop hole in the system. A loop hole that most likely will be plugged by our courts.

But what do you think will happen?

Comments welcome.

Source.

  • Buffet

    Too cool for school. I can’t wait! As far as legality goes, it’s only a matter of time before oatmeal is outlawed. Congress and Wall Street are the real criminals.

  • Jeff

    The only legal thing they can do is put a EULA on the phone software making it against the rules to use the phone software on any other network. That would stop them from using newer handsets, but for now I see it being a hit. Being able to make phone calls on magic jack and then use my wi-fi for data in home means no more minute limits. 20 dollars a year is what they charge right? That sounds like a great deal for being able to use the basic minutes plan.

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    Hi Jeff,
    I agree. If it is only $20 a year like there other MajicJack connection, this would be a steal!
    If you hear more about the MagicJack for cell phones, please let me know. I have an AT&T cell with 3G service so it may just work. :-)

    TIA, Ron

  • Ryan

    Oh, who ever listens to a EULA? I sure as hell don’t.

    I think the only “EULA” I’ve ever complied with was the GPL and other such licenses that you really can’t violate as a user.

    I’d love to get my hands on one of these things before the FCC declares them illegal or something.

    Why should you pay through the nose for cell phone minutes when you’re home half the time or more anyway?

  • http://twitter.com/madhi19 Rambling Johnny

    I think Cell carrier are going to freak for a while than they realize that home call are mostly done at night or during the weekend and most plan already give unlimited nights and weekend. But this is really going to push the move toward dropping the landlines. And if they can come up with a way that every wi-fi hotspot can also be a magic jack hotspot this is going to make one hell of a splash!

  • http://wp3.lockergnome.com/nexus/blade/ Ron Schenone

    I certainly hope it makes a splash. If it fly’s I’ll be the first to join.

  • Jonathan

    It’s nice to see someone drive a stake through the heart of cellular carriers and their bloodsucking lust for money. The entire “minutes” scam is exactly that, a scam. There’s absolutely no reason why cellular carriers need to be micromanaging minutes any more except to rake in fees.

    It’s a marvelous idea. Hooray, MagicJack!

  • http://www.thebluedot.net TheBlueDot

    I can’t see this taking off anytime soon. Not just for legality purposes but if MagicJack takes market share from AT&T or Verizon, they won’t be able to afford the towers to make service readily available to support MagicJacks bandwidth.