MagicJack’s next act: disappearing cell phone fees

LAS VEGAS -The company behind the magicJack, the cheap Internet phone gadget that’s been heavily promoted on TV, has made a new version of the device that allows free calls from cell phones in the home, in a fashion that’s sure to draw protest from cellular carriers.

The new magicJack uses, without permission, radio frequencies for which cellular carriers have paid billions of dollars for exclusive licenses.

YMax Corp., which is based in Palm Beach, Fla., said this week at the International Consumers Electronics Show that it plans to start selling the device in about four months for $40, the same price as the original magicJack. As before, it will provide free calls to the U.S. and Canada for one year.

The device is, in essence, a very small cellular tower for the home.

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.
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Google hopes to change wireless retail game with Nexus One

It wasn’t much of a secret, really, but the sleek, Android-powered Nexus One is finally here, and yes: you can buy it directly from Google, over the Web. As expected, the unlocked, no-contract Nexus One will cost you a pretty penny, but subsidized versions will also be available from T-Mobile and … what’s this, Verizon Wireless? You betcha. Announced Tuesday during a press conference at Google’s Mountain View headquarters, the Nexus One (designed by phone maker HTC under Google’s strict supervision) is available for purchase right now on Google’s new Web store rather than through a carrier—a twist that some observers see as a paradigm shift in the wireless market, where the balance of power is usually tipped in the carrier’s favor.

Then again, Google is sticking with the practice of charging an arm and a leg for an unlocked, no-contract handset. If you want it unlocked for use with any SIM card and without a contract, the phone will set you back a cool $530. Here in the U.S., you’ll be able to use the Nexus One with either an AT&T or T-Mobile SIM card; that said, AT&T users will only be able to tap into the carrier’s EDGE data network, while T-Mobile customers can use both EDGE and 3G.
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