Phone calls for under $20 a year?

I have been listening to many podcasts lately and on one of Cnet's blog they mentioned a product called magicJack. It is simply a $40 dongle that connects through any USB connection on your computer or laptop and allows you to plug in a analog phone line. It installs in minutes and then you can start calling. The first year is included in the $40 price tag and it is only $20 each year after. I have been researching VOIP for a while now and haven't found anything else like this. Could this be a Vonage or Skype killer? That remains to be seen I am going to purchase one within the next two weeks and I will be back with a more in depth review of the quality of the service.

The magicJack service has the following features that can make it comparable to both VOIP and standard phone service:


-Free Local & Long Distance calling

-Free Phone Number

-Free Voice Mail

-Free Directory Assistance

-Free Call Waiting

-Free Follow Me (multi number forwarding)

-Free International Calling

The features seem nice and since there is no extra charge it is almost a fresh breath of air after since phone companies have been charging additional fees to access many of these features. The free international calling is basically when you are traveling to that country and take it with you. You are able to still receive and make calls as you would normally in the US. However calling the a foreign county with the service isn't available at this time, although according to the site's FAQS it is on its way. We will see how the whole thing pans out. I wish this small company the best of luck. It is nice to see an innovation that isn't dictated by the larger companies.