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magicJack CEO: Femtocell offering by Q1 2010
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Dan Borislow, CEO of magicJack parent YMax, said in an interview the company has passed 4 million units sold, will do around $100 million in revenue this year and currently is hard at work developing a femtocell offering that, he said, could be ready as early as Q1 2010. "Sister company" Stratus Telecommunications' CEO Nathan Franzmeier said the femto offering could cause the current $39.99 offering price to increase, but Borislow was optimistic that the device could be produced cheaply enough to keep the price constant.
With every metric trending through the roof, it's almost hard to imagine Borislow's early days with the company, when he said had to spend heavily before receiving a dime of revenue.
"I had $25 million in fixed costs before I sold my first magicJack," Borislow said. "Eighteen months ago, I didn't have a single customer. It's taken a while for those fixed, network costs to be covered by units sold, but we're really in a good place now with our cost structure."
Borislow said magicJack is "the fastest growing telecommunications company in history," which likely will be disputed, but Borislow thinks the femtocell offering could make his claim ironclad.
"If we move enough femtos out, I could mesh together 10 million end points into a WiFi network," Borislow said. "I tell my employees we're just limping along right now, and they need to get prepared for the most explosive thing ever in telecommunications."
For more:
- see the VoIP Planet article on the "FemtoJack" here
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Comments
Posted by Anony | July 1, 2009 - 1:07pm
"Borislow said magicJack is "the fastest growing telecommunications company in history," which likely will be disputed, but Borislow thinks the femtocell offering could make his claim ironclad."
MagicJacks growth rate is a function of it being sold at Walmart. There are many products retailed through Walmart that can claim that they are the fastest selling X ever.
The limitation on MJ growth is that they have very low annuity revenue. What percentage of current users will they get to reup the $19.95 for the second year.
Their market is limited by a relatively poor service that has to be used through a PC. And their customer service is non-existant. They can be profitable, but their service will only appeal to a percentage of the population.
Posted by Anonymous | July 2, 2009 - 7:17am
The MagicJack femtocell is not a femtocell. It's a bit of RF hardware that plugs into a computer so that the combination becomes the biggest and most expensive femtocell in the world.
Posted by Brian Kortmeyer | July 3, 2009 - 2:43am
Hey Posters without balls! See me? My names Brian. Let me square you two into a small, little, box. MagicJack rocks! It is the best thing besides my ipod that I own. For $100, I have 6 years of unlimited canada and the united states! That is an average monthly rate of $1.39! Tell me now, kiddies, what are you paying for your telephone service? And a few more things. It is a higher quality than any voip, cell, land line system. And it has voice mail, redial, a nice on screen phone book. And works FLAWLESSLY!
Thank You.
Brian Kortmeyer
Posted by Dennis | July 4, 2009 - 9:53am
MagicJack has a great VOIP network but the dongle device is holding them back. The fact that a computer needs to run 24/7 is inconvenient and an energy waste. They need to introduce a bring your own device service plan that lets users connect an Analog Telephone Adapter directly to their routers. If they would do that, their retention rate rate would go through the roof.
In Europe, where VOIP is king, the byod ATA services are dominant. MJ has a great start but the dongle only model is going to limit future growth.
Posted by Anonymous | July 8, 2009 - 6:31pm
do you like MagicJack? you'll LOVE Ooma. Forget the (above mentioned) $1.39 month. Ooma is FREE. the quality is FAR SUPERIOR than MagicJack. I have both.
Posted by Anonymous | October 15, 2009 - 3:49pm
SKYPE CALLING NOW AVAILABLE FOR MAGICJACK
We are posting this message to announce the release of our new Skype dual mode calling software plugin "SkyjackPlugin" for magicJack users.
To place Skype calls just dial * before the number you want to call. Speed dial numbers are available for dialing other Skype users. Regular magicJack calls are placed as normal. For incoming calls, just answer the phone when it rings.
Users of the magicJack can now enjoy the added benefits of Skype including video calling, conference calling and free Skype to Skype user calls worldwide.
You can check it out and try it free at http://www.pcphonesoft.com
Posted by gerpster | January 11, 2010 - 1:02am
GOD SAVE THE QUEEN
GOD SAVE OBAMA
GOD SAVE MY MAGIGJACK
GOG RELEASE THE CELL RELEASE
OH GOD
Posted by gerpster | January 11, 2010 - 1:02am
GOD SAVE THE QUEEN
GOD SAVE OBAMA
GOD SAVE MY MAGIGJACK
GOG RELEASE THE CELL RELEASE
OH GOD
Posted by gerpster | January 11, 2010 - 1:03am
GOD SAVE THE QUEEN
GOD SAVE OBAMA
GOD SAVE MY MAGIGJACK
GOG RELEASE THE CELL RELEASE
OH GOD
Posted by Anonymous | January 26, 2010 - 12:44am
magicjack sucks, the sound quality is awful, and reliabilty is terrible. i dont wish it upon my worst enemy!!!
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