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Device-Based VoIP - Ridding Your VoIP of Monthly Bills

Comparison Between ooma, Phonegnome and MagicJack

By Nadeem Unuth, About.com

ooma

Device-based VoIP is a new kind of service whereby users buy a device that they can use to make free calls, without getting bothered with monthly bills. A first thought makes this 'invest one time and use forever' service ideal for most users, but there are some implications attached to it, like the cost, call limitations, and the definition of the so-called 'foreverness'.

The three main players on the market are Phonegnome, ooma and MagicJack. Phonegnome is the oldest one around; ooma the most stylish and grandiose; MagicJack the simplest. In this article, we compare the three different services based on general factors.

The Device

The ooma device is in fact a package including a hub and a scout, which is a device you connect to a traditional phone set. You can buy additional scouts in order to extend the service to more than one phone set. The looks of ooma hardware are quite impressive, with large buttons and shiny silvery complexions, reminiscent of Mac machines.

The Phonegnome box is a modified version of the Sipura SPA 300 ATA (phone adapter), that acts as an interface between the user's phone line and Phonegnome's service. So, it can be used simply as an ATA.

Magic Jack gives a jack - a small and handy device, somewhat like a pen-drive, that can be plugged into a computer. The device has a USB plug on one side and a phone port on the other for connecting the phone line. The two other devices therefore have to be home-based, while Magic Jack carries the advantage of being portable.

The Cost

In terms of device acquisition, Magic Jack is the cheapest, at $40. Phonegnome price sells its box at $100 while ooma raises the price to $250 for the box and the ooma scout. An additional scout costs $59.

It needs to be noted that Magic Jack's device is not free for a life time. Another $20 needs to be paid before using it a second year, which is not much compared to the competitors' prices.

Ooma shines by its price, doesn't it? But it also offers things that the others do not. The appearance itself is one thing, but even if one couldn't care less for the looks, there is still the advantage that it allows to make calls to any phone, landline or mobile, within the US, for free, unlike Phonegnome, which offers free calls only between Phonegnome users and not to any phone. MajicJack allows free calls to any phone just like ooma, but it carries the disadvantage of requiring to be connected to a computer.

How Free is Free?

So, do these services really eliminate monthly bills? ooma and Magic Jack do, if we don't consider international calls. As I said above, Phonegnome's calls through the box are free only between Phonegnome users, which is quite restrictive. This is not very convenient unless you have a restricted list of 'gnome-contacts'. This will mean that you will have to pay for all calls made to non-Phonegnome user, landline or mobile.

Magic Jack has no monthly fee but does have a yearly fee - $20 payable as soon as the second year starts.

International calls are paid for all the services, with rates comparable to other classic VoIP services, and therefore definitely more advantageous than traditional phone rates.

Features

Phonegnome and ooma include some basic features like voicemail, call recording, missed call alert etc., while Magic Jack focuses on giving the free calls.

ooma and MagicJack are very easy to set up and use, but they are very closed systems. They are for simple users who do not want to get bothered with technicalities and use the service straight away. Phonegnome is very open and flexible, but setting it up and getting it to work might be something of a challenge. Unlike the two others, Phonegnome supports SIP. Calls to SIP addresses are also free.

Requirements For Using The Service

All three services require an Internet connection and a PSTN phone line to work. Magic Jack requiring to be connected to a computer makes it lose credit as compared to the others.

Bottom Line

Like always, which one of these is better will depend on contexts, as each has pros and cons. But taking the cost factor into account, Magic Jack seems to be the best bet, since the hardware is quite cheap and it offers free calls to all phones, landline or mobile, for free. But if you don't want to remain attached to your computer, better look in ooma's direction. Still though, even with some more features, the high price will be somewhat deterring. Phonegnome's box is also cheap, but free calls are restricted to Phonegnome users; but Phonegnome as a manifold service covers a lot more other fields and service plans, with which the box can be complementary.

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