CTV's consumer affairs reporter Pat Foran reviews the Magic Jack, a device purported to turn your laptop into a computer capable of making 'free' long distance phone calls.

Chances are you have seen the Magic Jack featured in infomercials on TV. It's a small device that plugs into your computer and the company promises you'll get unlimited local and long distance calling anywhere in North America for just $20 a year -- and it works!

Consumer Reports, the respected publication that tests products ,was not impressed with infomercial products such as the Slap Chop, Sham Wow or the Ab Circle Pro – but they said the Magic Jack works well and gives good value.

We visited Durham Radio in Whitby where owner keith Carcasole says he has sold 80 Magic Jacks in the past two months. Carcasole says: "The Magic Jack basically turns your computer into a telephone. You can call anywhere in Canada, the U.S. and its unlimited calling. I think the problem was that people would see it on an infomercial and think it was too good to be true."

The device sells for $40, which includes your first year of long distance.

Key Points:

  • Magic Jack is a VoIP (voice over Internet Protocol) service similar to Skype that offers telephone calls through the internet
  • The device itself is smaller than a credit card and plugs into one of your computer's USB ports
  • It instantly loads its own software and enables users to make unlimited phone calls anywhere in Canada, the U.S. & the Virgin Islands for $20 a year
  • Canadian area codes currently cost an additional $10 a year
  • You will also receive a unique phone number, free incoming calls, free directory assistance, free call waiting, free conference calling, free voicemail and free caller ID
  • If travelling overseas, you can take the Magic Jack and make phone calls to Canada or the U.S. for free with your laptop or other computer
  • There have been some complaints about the online customer service

Additional Key Points:

  • The Magic Jack only works when the computer is turned on
  • Voicemail messages are also delivered to your e-mail inbox in the form of a .wav file
  • Magic Jack provides you with a unique phone number that you can choose when you register including the area code (Canadian area codes cost $10 more per year)
  • Magic Jack will run on Windows XP, Windows Vista, Windows 7 and intel-based Mac systems
  • The computer does warn that the product should not be relied on as the only way to make a 911 call due to possible power outages or computer problems
  • The device can be purchased online at www.magicjack.com or at stores like Tiger Direct (and the shop featured in Pat's piece)