MagicJack Femtocell Misses Planned Launch Date

It has taken longer than expected to finish the software and patents associated with the product, a spokeswoman with the company's public relations firm said. MagicJack expects the software to be complete in two weeks, after which time it will file an application for the device with the U.S. Federal Communications Commission, she said. The process of getting approval from the FCC for wireless devices typically takes several months.

The Consumer Electronics Show

Announced earlier this year at the Consumer Electronics Show, the femtocell product would let users make and receive calls inside their homes using their regular cell phones for US$20 a year. Calls would travel from a user's GSM (Global System for Mobile Communications) phone to a femtocell connected to their computers. The call would then be connected via VoIP. A femtocell is a small base station that extends mobile service coverage, typically indoors.

The controversy surrounds the legality of using the cellular frequencies, which are licensed to mobile operators, to carry the call between the cell phone and the femtocell. MagicJack has said that it believes people "own" the frequencies in their own homes, meaning if they buy the product, they ought to legally be able to use it.