While declining our request for a phone interview, netTALK CEO Anastasios “Takis” Kyriakides sent us the following statement via e-mail:

We, at netTALK, would like to respond to the comments made about our company and our product, the TK6000, as of late. Contrary to comments made, our company is founded and run by a staff of seasoned executives with decades of experience who firmly attests to and stands behind the high quality of netTALK’s policies, customer service practices, network and product development activities. Unlike others on the market, the TK6000 works independent of a computer, offering more convenience, flexibility and functionality to the end user – not to mention cost and energy savings. Because the TK6000 is flexible enough to not require the use of a fully powered computer to make and receive calls like other units, our customers are able to save time, energy and money. We developed the TK6000 by reviewing the current leading products in the category and focusing on the best attributes from each, resulting in a product we, and our loyal customers, feel is a best-of-all-worlds communication device.

On Wednesday, magicJack’s Borislow wasn’t nearly as diplomatic when he ripped into netTALK, whose TK6000 device, like the magicJack, offers customers the opportunity to make unlimited domestic voice calls using their Internet connections. When asked about his rival, Borislow said:

It’s a piece of sh*t. It has static. The call quality is pathetic. There’s no phone numbers available, and it’s run by a bunch of fly-by-nights with no assets. They’ll be bankrupt soon. We’re a real company with the best network and best software.

netTALK’s longevity seems to be the cause of some speculation.In addition to Borislow’s prediction that “they’ll be bankrupt soon,” BusinessWeek.com’s stock section has a news update from December 14, 2009 that reads:

Net Talk.Com Inc. filed its 10-K on December 14, 2009 for the period ending September 30, 2009. In this report its auditor, KBL, LLP, gave an unqualified opinion expressing doubt that the company can continue as a going concern.

However, the very same 10-K statement says:

Prior to  our fiscal year ended September 30, 2009, we were in our development stage.  Commencing with the fourth quarter of our year ended September 30, 2009, we concluded that we have substantially established our operating architecture and have commenced revenue producing activities sufficient to emerge from the development stage of operations.

Now that it is past the development stage, the company’s future likely hinges on the success of  its TK6000 product, which is built on a solid, but not innovative concept. Being able to connect a phone device directly to the router rather than the computer is a huge convenience, but Vonage has been offering a similar service for years now and many cable companies offer their own phone service via VoIP boxes as well.  The key, in netTALK’s case is that it offers the device and service for a one-time-only fee of $99 while Vonage typically charges $24.99 a month and most cable companies charge a lot more than that (Time Warner here in New York charges $45/month).

We haven’t had a chance to test the TK6000 yet, but we’re expecting to get in a review unit in the near future and put Kyriakides’ claims to the test. If it lives up to its claims and the company stays afloat, magicJack could be in for a challenge.

During CES 2010, magicJack publicly announced its upcoming femtocell (news that Mr. Borislow gave us months before), a device that enables GSM cell phones to connect through the YMAX Voice Network and sends voice data over the carriers’ towers. There’s been some rumblings about the legality of this, so we decided it time to contact Borislow once again for the real deal on femtocell, other magicJack products, and a rival: the magicJack-inspired netTALK.

When can we expect the new magicjack and what’s the estimated price?
The femtocell should be out in Q2 for around the same price as the current magicjack.

The femtocell has been the cause of some debate in regards to its legality. How are you allowed to place calls using the carrier’s networks?
It’s definitely legal. There are a couple of different ways to go. You can operate under Part 15 [a section of the FCC regulation regrading unlicensed transmissions], and there’s further exemptions if you operate under a boat, plane, or any transportation. They’re all exempt as well even without Part 15. You can use it in a car, taxi, in a park, a home, anywhere.

Are there any limitations?
There’s a power restriction, but it shouldn’t affect what we want to use it for.

Will this replace the current magicJack or be sold along side it?
It doesn’t have a connection for a land line phone, so the previous one won’t be discontinued. You can use it with a cell phone or existing magicJack.

Besides the femtocell, what else is in store for magicJack in 2010?
We’ve had a major upgrade in the last two weeks. All of your call logs and contacts, they’re on the network. They’re off the jack. So if you were to break your jack or had a mobile magicJack, everything is on the network and you never have to worry about losing the contacts.

We also did that because we’re coming out with a standalone phone similar to Skype, except it will be six times cheaper and the quality will be significantly better. That’ll be second quarter. After that you can expect BlackBerry and iPhone apps in the late 3Q. Its another reason to get the contacts on the network.

Do you see a change in the way that carriers conduct business now that magicJack has made such and impact?
They’re really focused on wireless, that’s why the femtocell is such a good proposition for their customers. They get to use the same phone; they don’t have to worry about going to a different carrier. The carriers are going to concentrate on the wireless, and I’m going to concentrate on everything else .

I’m sure you’ve heard of netTALK, the new magicJack rival. Any opinions on the device?
It’s a piece of sh*t. It has static. The call quality is pathetic. There’s no phone numbers available, and it’s run by a bunch of fly-by-nights with no assets. They’ll be bankrupt soon. We’re a real company with the best network and best software.

What are your thoughts on femtocell? Are Borislow’s reassurances enough to get you excited?

Like the magicJack, the $99 device allows users to make and receive free calls to anywhere in the USA or Canada, but one-ups its rival by allowing customers to chat it up without a computer. How does this miracle occur? You simply plug your high-speed connection cable, the included AC power adapter, and your existing home phone (corded or cordless) into the TK6000. Once that’s done, the phone should ring, signaling that that set-up is complete. Groovy. You also get the usual features you’d expect from a phone service such as caller ID, call waiting, directory assistance, and more.

Even better, there aren’t any monthly fees, so if you’re looking to dramatically slash your phone bill, the netTALK may make for a compelling alternative to your traditional landline. We’re eagerly awaiting putting this bugger through its paces, but until then a poll: Do you think the netTALK can topple the magicJack?

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.