Who's the competition for Magic Jack - Vonage Ooma Skype and MagicJack Compared

Magic Jack comes into quite a competitive market. They are facing competitors like Vonage, Skype, Ooma, and the phone companies themselves, offering VOIP solution packages along with the internet connection.

Skype - Skype is one of the most well known and entrenched competitors. In fact, skype was the company that forced the phone companies to offer VOIP services as well. Skype offers a free connection to other Skype users, as well as video phone conversations. Something that still hasn't been offered much with your typical telephone. They also unlimited phone calls to the US and Canada for $3 a month, or $36 a year. Additionally, you can purchase some cool phones that work at any wifi spot in the world.

In short, skype actually has alot more features than Magicjack overall, and only costs $16/year more. However, besides for not being more expensive, skype also never tried to make itself a simple replacement for the landline. There is no simple connection for your regular phone.

Vonage - Vonage is one of the earliest most popular VOIP phone services. They charge approximately $25/month. The most popular appeal of Vonage is their long distance and international services. Instead of having to pay outragous long distance costs or buying a phone card, vonage offers ridiculous pricing worldwide. Magicjack also offers free long distance in the US and low prices internationally. Vonage will probably be the biggest loser to MagicJack.

Ooma - Ooma has been mentioned in the LA Times article last year along with MagicJack. According to the LA Times, Ooma's big advantage is that they don't charge any yearly fee at all. The only fee that they charge is for the phone itself. However, the phone is expensive, at $399 a piece.

As far as news coverage is concerned, MagicJack definitely seems to have the big advantage.