David Nebenzahl wrote:
On 8/17/2008 6:43 AM George spake thus:

Dave Bugg wrote:

George wrote:

I never claimed they were an ISP but their business model is very
similar to what the "free" and "cheap" ISPs had. You paid a lower rate
because theoretically the ads that you were required to watch would
pay the difference.

So you are claiming that I won't be able to make or recieve a phone
call until I watch an ad? Do you really think anyone sits and watches
their dialer gui while making a call? I don't get what your issue is
here.

I don't have an issue. Is there some issue about discussing how
something actually works?

The subscription fee isn't even close to anywhere near the actual cost
of providing the service. The reason they chose the energy wasting
idea of having a computer running is so they could display ads. There
is no technical reason to have a full blown computer running for VoIP.
All of the functions are typically implemented in a tiny box that has
a network port and a phone port. Right now they are burning up
investors money and the next step is they will need to turn on the
ads. That is their business model. There is nothing magical about
magicjack. It is the exact same model that was used by the "cheap and
free" ISPs that are now nothing by a vague memory. I agree that I
couldn't be bothered watching an ad in order to make a call but that
is the business model.

Pardon my confusion, as I don't know exactly how this thing works, but
if it's true, as D. Bugg says, that one needn't watch the screen at all
for incoming calls, couldn't one just use the tiny network box for this?
Or is there some user interface interaction required to take and place
calls?


The business model is that ads will pay for the service. Currently there
are no ads because they are running on investor money. The reason they
chose the power wasting method of needing a computer is so they can
deliver ads. There is nothing technically magical about magicjack. It
uses SIP like the other VoIP providers with some proprietary stuff to
prevent use of an ATA, the "tiny network box" you described.