MagicJack's next act: disappearing cell phone fees

(AP) -- The company behind the magicJack, the cheap Internet phone gadget heavily promoted on TV, has made a new version of the device that allows free calls from cell phones in the home.

It's sure to draw protest from cellular carriers. The new magicJack uses, without permission, radio waves for which the carriers have paid billions of dollars for exclusive licenses.

YMax Corp., which is based in Florida, said this week at the International Consumers Electronics Show that it plans to start selling the device in about four months for $40. That's the same price as the original magicJack. Like the original magicJack, it will provide free calls for one year.

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