Seriously? MagicJack, the Palm-Sized VoIP Device?

Despite the name, I decided to try the MagicJack. Turns out, it’s not as bad as it sounds.

You can get all the long-distance you can manage across the United States and Canada for about $8/year under a five-year deal.

You can travel with the device and plug it in anywhere there is an Internet connection. You can even be in Europe and call the United States from it. Have anyone living abroad? Just program it from your U.S.-based computer, ship it to your family or friends overseas, and they can call anyone at anytime as though the call originated in the United States.

In general, pretty good. The key is ... (drum roll) ... you must have a very reliable DSL or cable modem connection for it to work perfectly. If your connection is any less, you can expect the occasional “tinny” sound and sometimes a latency issue.

The provider currently is promising a $34.95 flat fee for the first year (not month) for the device, and $19.95 for each successive year. The offer also includes international calling. By comparison, Vonage Holdings Corp. is running a promotion of $9.95 per month with a regular charge of roughly $25 per month.

The VoIP device’s inventor, Dan Borislow, said the telephony application can deliver up to $1,000 in savings per year and will lead to $1 billion in customer savings in 2009.

Both Best Buy and Radio Shack currently retail the device, and two more large retailers reportedly will be announced as partners by the end of January.