UPDATE: The MagicJack phone jack received Product of the Year in 2007. After the purchase of the MagicJack USB dongle (about $40) you pay a one time fee of $19.95 per year for unlimited calling. Not $19.95 per month BUT $19.95 per year. This will reduce your phone bill to just $20 a year! The MagicJack phone is available at Amazon.

MagicJack is a convenient USB dongle with phone jack attached to it. By connecting your regular phone to the MagicJack phone port, you can now make free calls anywhere within the US for free. If traveling in Canada, Mexico, UK, China, Italy and Israel then you can call home (USA) for free.

MagicJack is a VoIP service which doesn’t have phone charges but rather an upfront cost for the USB dongle. No pricing yet, but it does provide not only free calling using your regular phone, but includes call forwarding, caller ID, call waiting and free phone number upon purchase. Dan Borislow is the founder of this company and it’ll be interesting to see his price point for the MagicJack USB dongle and how that meshes with customer value perception.

The Magic Jack phone is available from Amazon.

Here is a YouTube video review and highlight of the Magic Jack Phone.

If you can’t see the video, click here.