Andy has a point here, http://andyabramson.blogs.com/voipwatch/2011/04/did-magicjack-lose-its-magic.html. It’s very reminiscent of the old RLEC + VoIP strategy that allowed RLECs to profit from a loophole in the system to drive revenues around inbound calls subsidized heavily by the larger ILECs. A fund called the USF (Universal Service Fund) was a cash cow for certain RLECs and their strategic partners, that became a real hornet’s nest.
