I once ran the numbers and Magicjack is slightly cheaper on a yearly basis than Skype. After the first year it become MUCH cheaper than Skype (if you have Skype In and the Skype pro subscription).

I'm convinced that a lot of the reports about MJ being bad are posted by the competition, including some of the brand new users in this thread. Even on my blog I see folks from all over the world (mainly eastern Europe) claiming they have MJ and warning people how "bad" it is.