The company behind the magic jack, the cheap internet phone gadget that’s been heavily promoted on the TV, has made a new version of the device that allows free calls from cell phones in the home, in a fashion that’s sure to draw protest from cellular carriers. The new Magic Jack’s users, without permission, radio frequencies for wich cellular carriers have paid billions of dollars for exclusive licences. YMax Corp., which is based in palm beach, Florida,said this at the International Consumer Electronics Show that it plans to start selling the device in about four months for $40, the the same price as the original magicJack. As before, it will provide free calls to US and Canada for one year.

The device is, in essence, a very small cellular tower for the home. The size of the deck of the cards, it plugs into a PC, which needs a broadband internet connection. The device then detects when a compatible cellphone comes within 8 feet and places a call to it. The user enters a short code on the phone. The phone i then linked to the magicJack and as long as it is within range (YMax said ti will cover a 3,000-square-foot home) magicJack routes the call itself, over the internet, rather than going through the carrier’s cellular tower. No minutes are substracted from the user’s account with the carrier.any extra fees for internationl calls are substracted from the user’s account with magicJack,not the carrier. According to YMax CEO Dan Borislow, the device will connect to any cellphone that used the GSM standards, which in the US, includes phones from AT&T Inc. and T-Mobile USA. At a demonstration at CES a visitors phone with a T-Mobile account sucessfully placed and recieved calls through the magicJack.