MagicJack’s VoIP Scheme Slammed by AT&T, FCC

Hat tip to our old pal Andy Abramson for tracking a legal development in the VoIP world — seems like the factually elusive Daniel Borislow got his MagicJack VoIP scheme slammed by AT&T and the FCC. Andy’s post has a thorough explanation of the beef, which we will try to distill further — basically it appears that Dan was trying to subsidize the “low-cost” MagicJack plan by billing AT&T and other large carriers for completing calls, a la the old Iowa-based Free Conferencing dodges of the near past.

It was interesting to see that the FCC didn’t rule that MagicJack’s plan was illegal, immoral or unlawful — it simply agreed with AT&T that MagicJack had tried to fudge the way it described its service and that error meant that MagicJack can’t charge AT&T the fees it is claiming. What that means for us MagicJack and Borislow fans is that the Dan show probably ain’t over yet, though as we stated before you have to wonder how people can continue to put good money into a stock of a company that calls something like this a financial release.

While we are waiting to hear back from Dan (who sometimes responds to our emails, but sometimes not) anyone seen the heralded magicjack Plus or the hinted-at femtojack, which less cynical “news reporters” apparently expect to hit the streets any day now? C’mon Dan, can we at least see if one of your promises comes true?

UPDATE: Dan Borislow apparently replied to a blog post by Forbes’ Eric Savitz on this subject. You have to click to open the comments but our man Dan is in a fighting mood… as he says (we have every reason to believe it is really Dan posting) about AT&T, “We are owed the money, we suplied [sic] a valuable service and when AT&T tried to strongarm us, we told them where to go.” Read the blog post for more.

One Response to “MagicJack’s VoIP Scheme Slammed by AT&T, FCC”

  1. jeovanni Says:

    well, i don’t about you guys but i canot receive calls from att&t anf verizon out of state.

    or i get a buzy signal or it says that it’s a long distance call and canot be completed as diled.

    i called verizon 10 times and talked to magic jack support team 100 times.

    they blame each other and says everything is good on theirs end.

    well i use my magic jack for business purpose and now?

    if i can’t receive calls from tt&t andverizon what to do?

    please report if you guys are having same issue.

    thanks for now!!

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