It uses Internet service to allow consumers to make phone calls to and receive calls from traditional mobile and landline phones. MagicJack positions itself as a competitive replacement for traditional telephone services. The company is also required to regularly report to the Commission on its compliance with this agreement.
The $5 million settlement resolves the Enforcement Bureau’s investigation and makes clear that magicJack will comply with federal rules going forward. I thank the FCC Enforcement Bureau team for their hard work and dedication to enforcing the law.” “I am glad we can resolve this long-standing investigation. “Today’s settlement sends a strong message that we take seriously the requirements on VoIP service providers to meet their legal obligations,” said Ajit Pai, FCC chairman. In addition to agreeing to the settlement magicJack, which sells a VoIP telephone service to consumers, also agreed to an extensive compliance plan. The news follows charges levied against the company for failure to report its interstate revenues and contribute to the Universal Service Fund. The Federal Communications Commission (FCC) has reached a $5 million settlement with voice over Internet provider (VoIP) magicJack.
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