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MagicJack is fine if you only want to make calls... and don't mind occasional crap service. My limited experience with it indicates the service sucks. They're also years away from profitability and any chance at providing a long term service. Oh yeah, the jack only gives you an RJ11 which you must plug in an analog phone. If you plan to use such a service while traveling, do you really want to pack your pink Princess phone in your bag?
I have a wedding photog buddy on the Indiana side of Chicago. Vonage is the most cost effective way he found for having local numbers in both Illinois and Indiana, plus an 800 number. He has used it from home, coffee shops, hotel rooms, etc.
I have another buddy who is an airline pilot with a side job doing sales for a technology company. He takes Vonage on the road with him all the time.
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