I got Magicjack 3 years ago and it works great. $19.95 a YEAR for phone serve with unlimited minutes and no long distance charges in US.
I also cancelled my cell phone when contract ended and got a TracPhone with 1200 minutes and a year to use them for less than $100.
Cut out a lot of waste of $$$$
We tried Magic Jack several years ago when we lived in a rural area. Didn't work for us because we were on a limited bandwidth internet connection via satellite. The sound quality and signal strength were just terrible.
Now that we're back in the city, it would probably work. We're on a solid copper line now, so I expect the performance would be a lot better.