Via Engadget

However, magicJack has also proven to be a hot-bed of controversy, at least amongst LAPTOP readers who visit this blog. Although a number have touted the effectiveness of the product, another vocal segment has claimed that the device is shoddy and lacks reliable customer support. Some have claimed that magicJack flat-out doesn’t work; one person has stated that it wrecked the PC it was plugged into.

When we spoke with magicJack creator Dan Borislow in April about the forthcoming updated magicJack, he mentioned the company’s much-improved Better Business Bureau rating. Sure enough, when we checked it out in April it was currently at “A-” and maintains that ranking as of today.  There has been 1,357 complaints filed against magicJack in the past 36 months in which the overwhelming majority have been addressed by the company. Still, we receive passionate e-mails and posts from frustrated magicJack customers such as this one from a reader who had to deal with a lengthy 45 minute customer service hold time (after getting an unpublished magicJack phone number):

Not everyone who sits in front of a computer grew up with computers and has the necessary skills to deal with your product as it exists today….you could try to make it more user friendly…an “owners manual” would be a good start. After reading your responses to questions about complaints it appears to me that you don’t  have a clue as to the needs of your customers…or maybe you just don’t care!

When we spoke with Dan Borislow in April, he mentioned that a large number of retirees make up magicJack’s base. Could it be that the product isn’t easy enough for less-tech-savvy users to install?  Even the best devices sometimes produce errors, so its not out of the question that a certain segment of the magicJack userbase who are unaccustomed to dealing with such problems may be more likely to proclaim that it’s defective.

This isn’t to take blame away from magicJack; clearly, the company needs to meet the needs of its customers.  And magicJack doesn’t do itself any favors by having its tech support reachable only through the Web; non-techies may feel much more at ease speaking with a live human on the telephone.

So we ask you, magicJack users: Is the problem the product, a lack of phone support, or not understanding how to diagnose problems that occur?

Pictured: Current magicJack

You’ve read the news and reviews online. You’ve seen the TV spots. Magicjack has proven to be a surprise hit device since its launch in 2007, and – on this site at least – has proven to be a hot topic that has  stirred passionate debate about the low-cost, plug-and-play telephony service ($39.99 with one year of service included in price).

In that time, magicJack has seen over 700 bug fixes and improved customer service, which has seen its Better Buisness Bureau rating jump to an “A-” (previously, it was a “F”). And with sales totalling over 3 million units, it looks like the company is thriving.

Still, magicJack inventor Dan Borislow isn’t resting on his product’s success; big plans are in motion that will expand magicJack’s functionality. After the jump, Mr. Borislow’s big plans for magicJack.

• New magicJack: In Q3 2009 or Q1 2010, there are plans to release a new magicJack model that will utilize femtocell technology to enable users to shuffle their GSM phone calls through a magicJack to save minutes and boost indoor call quality. The connection will be wireless, and ride a portion of cellular spectrum. According to Borislow “it’ll be just a little bigger [than the current magicJack] and the expense will be just a few dollars more.” It’ll also feature a revamped 911 system that uses triangulation to plot your current location.
• Number-porting: One of magicJack’s most requested features, the ability to transfer existing numbers to magicJack, should arrive “within the next 60 days.” This will be available to both current and new magicJacks.
• Linux compatibility: Mac and PC users have been using magicJack for some time now, but Linux has been left out in the cold–but not much longer. According to Borislow, Linux compatibility should be available “3rd quarter of this year.”  This addition will be available to both current and new magicJacks.
• A downloadable application for mobile phones: more on this as information becomes available. Could it compete with the recently released Skype for iPhone?

Clearly, magicJack is continuing its assault on the telecommunications space. If the company can maintain its level of customer service (which was one of the biggest complaints that users had when the product initially launched), it just may give gabbers more reasons to ponder ditching their landlines.  So tell us what you think: Do the new magicJack features tempt you enough to cut the landline cord?

While the new designs were very attractive, the screen sizes remained the same. One had a glossy black border, while the other sat atop a speaker.

On both prototypes, Verizon added the ability to switch between multiple pages of applications. And to provide new applications, Verizon showed us an application store portal called App Mart for installing things like Rhapsody radio, an Alarm clock, and more.

Other updates include a browser–Verizon is still working with partners and wouldn’t confirm if it was powered by Opera or not–as well as standalone apps for YouTube,Twitter, and recipe software.

Previously, we were a bit turned off that the technology was only available to Verizon Wireless customers, but the company says that it’s planning to waive that requirement soon, so that anyone can purchase and use the Hub.

The new units were much more attractive than before, and the industrial design reminds us a lot of digital picture frames as opposed to the big telephone hub that this first version of the unit looked like.

Photo via Engadget

It’s compatible with Windows (XP & Vista) and OS X and has a USB sound controller, speakerphone, and mic.  According to EverythingUSB you’ll even be able to answer the phone by flipping it open Captain Kirk style and attach it to any number of cloth surfaces thanks to velcro backing.  I cannot wait until this thing comes out.

Hat Tip: Everything USB via OhGizmo!

The Wave internet phone lets you place phone calls through VoIP accounts like Skype to regular handsets wherever there’s an available Wi-Fi hotspot. We like the white coloring and the overall industrial design of the device, including its sensitive touch screen, but it still feels a bit late to the market. Skype phones were a bit popular a few years ago, and they weren’t all that popular, but iRiver builds on the idea by adding additional features like the 7-inch LCD display, support for SMS messaging, a music and video player, an e-dictionary, an FM radio, and more. The device was lighter than we thought it would be, and it’s a novel idea to take a device that can stand alone as a fully dedicated PMP and add in native VoIP support.

The Wave Home Communication Multimedia Communication device, as we suspected, is perfect as a bedside accessory or a secondary computer for the kitchen. You can place video calls through its built-in Web cam and add up to three people in a conference call. If you want to walk away from the device and stay on the line, you can pick up a headset that’s stowed in the rear of the device and wander around the house. It also neatly displays the weather on the home screen, and you can use it as a photo viewer as well. We liked the accurate touch screen, but were disapointed to learn that it’s only scheduled to launch in Asia right now, with a potential U.S. launch later.

With this app, users can call and text chat with their Skype friends using their phone’s cellular network, as opposed to their PC’s Wi-Fi or local connecton. That also means you’re subject to your carrier’s calling and data rates, whereas if you made a Skype-to-Skype call on your PC it would be free.

So, you take a hit on costs, but the beauty of it, of course, is the mobility; you can call your Skype friends anywhere, and not have to be tethered to your PC. Particularly, if you’re calling Skype friends living abroad, it’s still a less expensive way of keeping in touch than placing a regular phone call.

Having trouble imagining how this works? Check out the gallery after the jump.

The Unit 2-S is a simple touchscreen computer that would best serve as a secondary PC in a living room or kitchen. It offers a 7-inch touchscreen display and runs on Linux. You can use it to place VoIP calls using its built-in speakerphone or a home wireless handset, or you can make video calls using its built-in webcam. Its Linux operating system lets you launch widgets for checking the weather, viewing photos, listening to music, watching movies, and surfing the Web.

The device seems fairly limited and you would probably be better served by a netbook running Windows XP, which wouldn’t put limits on what you can do in terms of the operating system functionality. But you may appreciate its futuristic-looking design and the lack of a need for a keyboard or a mouse, thanks to its touchscreen.

The W10 reminds us of a few Skype phones that took off a few years ago from the likes of Linksys and Netgear. Except the W10 is a bit more advanced. It offers a full 3-inch, 480 x 272-pixel resolution touchscreen display, 4GB of storage, a music player, video and photo viewer, E-Dictionary, Flash games, an FM radio, and SMS messages. Those features all support the true purpose of the device: Internet phone calls. The only trouble is, you’ll need to have access to a Wi-Fi connection to place those calls.

We like the white form factor and sleek design of the W10. It reminds us a bit of the Samsung Omnia that launched on Sprint last year, especially considering the simplicity of its face: there’s just a single control button under the display.

It’s a compelling device, but a smart phone can also support all the aforementioned features and place calls anywhere. Still, if you’re looking to cut back on your cell bill, you may appreciate the W10.

Stay tuned for a full hands-on with both of these devices as we tackle the CES show floor.

Skype promised at the time that they would listen to user feedback and reaction to the new beta. And listen they did, even to me. I said in my original impressions post of 4.0 that “I wish it had a classic mode that could revert back to the settings that frequent Skype users are used to.”

Today, Skype unveiled the second beta version of its 4.0 software (it will be available for public download tomorrow at 4p.m. EST) and lo and behold it has a “compact mode.” This time around, you can select the compact mode (from the View menu) which allows you to separate your contact list and from the chat windows. Hallelujah!

I have been running the new version of Skype Beta 4.0 in compact mode for the day and think I am finally ready to give up on version 3.

Not only does the compact mode save a lot of your desktop space but it also allows you to run a video call right from your chat window.

I had a good video call with Todd Haselton while he was on the XOHM network in Baltimore. I was able to launch the video call right from the chat window and expand the video window to a  full screen size mode,  picture in picture layout or a picture on top of picture mode (see screenshot above). All the video controls, including volume and tweaking your settings are on the bottom panel of the chat window.

Beyond the video calling and new client mode, the overall look and feel to the interface is sleek and easy to navigate. Got to hand it to Skype on this one.  I’ve got to say I like the new client way better than the Skype commercial during NBC’s The Office this week. If only Pam and Jim could have used Skype to video call each other!

All you have to do is check out the comments section of our What’s New With magicJack and magicJack Inventor Q & A posts to witness some of the opinions being shared on both sides of the magicJack debate.

Being the intrepid reporters that we are, we decided to contact the Better Business Bureau to see what have been the primary customer issues with the little-telephony-device-that-could. A quick search on the company Web site revealed that the Better Business Bureau has given magicJack a less-than-stellar letter grade.

A grade is determined by a number of factors including the length of the time the company’s been in business, complaint volume, complaint history, how the company responds to said complaints, and other factors. So which grade did the Better Business Bureau give magicJack get?

A big, fat “F.” The BBB’s summarizes an “F” with:

“We strongly question the company’s reliability for reasons such as that they’ve failed to respond to complaints, their advertising is grossly misleading, they are not in compliance with the law’s licensing or registration requirements, their complaints contain especially serious allegations, or the company’s industry is known for is fraudulent business practices.”

According to the BBB, the two most common complaints involve consumers being charged the full price of the magicjack shortly after signing up for the free 30-day trial, and that it’s extremely difficult for them to contact customer service in order to receive a refund.

Since we’re a fair and balanced crew, we reached out to magicJack creator Dan Borislow for his response to these charges. Here’s what he had to say.

Charge #1: Some customers are being charged the price of magicJack during their free 30-day trial.
DB: This is not true. You will not find one person who was charged before the 30 day trial was completed. The issue is debit card holders, who were told at least 2 times, that there would be a hold against their debit/credit card at time of order. The issue with debit cards is that a hold may have the same effect as a charge on their debit card, causing overdrafts and the like. We do not accept debit cards anymore for a Free Trial, but offer instead a 30 day money back guarantee now. We have had this new policy in effect for about 30 days, and it appears to have fixed this type of complaint.

Charge #2: Customers are finding it difficult to reach customer service for a refund.
DB: This is ridiculous; it is everywhere on the site. They do not need to reach customer service. It is completely automated and gives an RMA with a scan line. They will also be instructed by Live Chat when they sign on to it or when they ask an agent. Try it yourself.

The real issue is that there are professional bloggers hired by our competition to disparage the company. We get over 100 requests a day to resell the product. We have delivered over 1,000,000 units in 7 months. People are very happy with the service. The customer service answers questions within 4 seconds. I am sure this is the fastest in the industry.

The reps all get graded and we cut the ones who are not performing. We give you an escalation path to go to if you are not happy with your Rep. I have never seen a competitor offer this type of service. Call up Verizon or AT&T and wait 3 minutes for a rep to answer, who never gives you a credit.

As far as Better Business Bureau is concerned, we agreed to treat debit card customers differently than we used to. This was the overwhelming complaint with them. Further, I have Comcast cable in my house; they are rated an F. I use Sprint on some of our phones; they are rated an F. My bank, who I have been with forever, Colonial Bancorp, is rated an F. The list is endless. But we listen to everybody and make improvements constantly.

Our reliability, call quality, and customer service have all improved dramatically in the short period of time we have delivered 1,000,000 magicJack (within a year’s time) .It is an amazing story in itself we have grown this fast in such a short period of time. Give me one year in business and we will surpass all our competitors. Unqualified, we have offered the best price and call quality from day one, and we will soon offer them the most reliable and best customer service. I am very proud of where we are to date.