magicJack Changes VoIP Positioning

Rich Tehrani : Communications and Technology Blog - Tehrani.com
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magicJack Changes VoIP Positioning

It is early on a Saturday morning and a I flip through channels on the TV I noticed an infomercial for magicJack and I just can't believe how good it is. I have been hearing that the magicJack has been selling lots of these devices and the company's competitors tell me often that they are a very tough competitor.

The concept is simple. Use a USB-based ATA and connect any analog phone. The device gives you the best features of Skype and Vonage in one. It is convenient like Vonage and is cheap like Skype.

The pricing is pretty good at a flat $19.95/year for calls, voicemail, Call Waiting, etc. You also get a phone number.

The infomercial touts a 30-day free trial as well.

I haven't had a chance to try one of these devices but I get the feeling this product will launch a new category as it simplifies VoIP.

The company deserves high marks for great marketing as this infomercial is very compelling.

It is also worth mentioning that in a conversation with Net2Phone about a decade ago the company's PR team told me sales were doing better because they stopped marketing the fact that they were putting phone calls on the internet.

Vonage, the most popular pure-play VoIP provider doesn't really tout the technology behind their service and neither do the other players in the market.

magicJack in contrast does peripherally discuss the advanced technology the company uses and moreover cites market research growth statistics in the commercial. It even uses terms like calls over the internet and even dares to pronounce "telephony" on TV.

I am truly fascinated by how this company positions its products and am waiting to see if magicJack changes the competitive communications market in the world. I suspect we will see more companies doing similar things and packaging their products in a like fashion and switching to pricing plans that are very close to this offer.


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