I have never used MagicJack, but have used Ooma for a number of years. They had a few audio quality issues in the first year or so, but now quality is fine and you can't tell it from Plain Old Phone service. VoIP is the generic term for voice over Internet Protocol.

You buy the adaptor to connect to your internet service (one time purchase charge) and from then on, there is NO charge. Not monthly, not Long Distance, Caller ID, etc. If you want any of the fancy features like a second line, call forwarding, etc. there is a fee, but I take none of these. International long distance is extra, but I never use it and never pay anything. You don't need a computer wired to the internet service provider to get this service.

There are web links that say you have to pay taxes on your phone calls, but I've never been billed for anything with Ooma.

http://www.ooma.com/

If you are a Costco member, you can buy the adaptor there:

http://www.costco.com/Ooma-telo-voIP-Free-Home-Phone-Service-with-Linx-.product.11752829.html