We've had the Magic Jack I think since about February or March. Although we are not totally in love with, it's still a pretty good deal. The jack itself is $20 and a year service is $20. So when you first buy it, it will actually be $40, which will include the first year's service.
We didn't have a home service before and use our cell phones mostly, but we were looking for a way to reduce our cell phone bill. We were looking to go into prepaid, but instead we just put mine and my husband's cell phone plan with my mom and we share the minutes. But so we don't have to use up all the minutes and hopefully my mom can reduce the minutes, we use our Magic Jack phone as much as possible. The problem is, that you have to keep your computer on 24/7 if you want your phone to work. But it's worth it. There are times when it will say it's not plugged in and I can't fix it, but my husband knows how. I'm just clueless when it comes to this type of stuff.
So I would recommend this to anyone. In my opinion it's not perfect. But I do know people who don't have any problems with it and totally love it. There is a 30 day trial period, so if you don't like it you can get your money back. We got ours at Best Buy, but I think you can get it off of Magic Jack's website too. Now you do have to have a certain speed for it to work. I think you need 2 of something (can't remember what they are called). When we first got it we had 1.5 and it worked OK for us not having the right speed. Now I think we have 8 and it works better.
Oh and a couple of things I like about it: Your voicemails go to your email! You can even listen to them straight from your email! You can also take your phone with you! My friend who recommended the Magic Jack to me said her father in-law brought it to his camp and had his phone there.