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Unlimited Phone Calls For $20 Per Year - As Seen On NewsCenter 5 Story - WCVB Boston

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BOSTON -- At a time when gasoline and home heating oil prices are at or near record-highs, who wouldn't want to save on their phone bill?

MagicJack is one of many Voice over Internet protocols, or VOIP, that has emerged on the consumer phone market in recent years. But unlike competitors including Vonage and Skype, magicJack costs only $20 a year.

The company promises that you can never have a monthly phone bill again. Instead, consumers plug their home's phone cord into magicJack, then make local or long distance phone calls over the Internet.

Consumers pay $40 for the first year, which includes a $20 fee for the magicJack device. In subsequent years, consumers pay just $20 for unlimited calls nationwide.

NewsCenter 5 put the quality of calls made using magicJack to the test.

"It sounded the same," said one woman. "I couldn't tell any difference."

Another said, "I can't tell the difference. It was great."

The pros of making calls over Internet lines are hard to beat, especially the price. It's also portable, and most services include all the perks customers have come to count on, like caller ID, call waiting and voice mail.

But there are some cons. Most companies charge a fee to cancel within the first year. Callers may not be able to keep their previous phone number or get 911 service. And most importantly, if the power goes out or Internet service goes down, phone service goes out, too.