said by laserjobs :

A lot of people have been wondering how magicJack can be only $40 a year based on an ad panel on the softphone. There is another side that the end users don't see. While all the other VoIP providers are using CLECs like Level3, magicJack is their own CLEC.

If you look at a phone number provided by magicJack you will see that it is not a major CLEC holding the number. For example my number CLEC comes up as "324E", where as my other numbers come up as Level3 and Pac-West.

»nextelonline.nextel.com/NASApp/w···CLanding