magicJackVoIP pioneer magicJack VocalTec plans to target the lucrative small and medium business (SMB) market with a new magicJack SMB hosted VoIP offer. The SMB effort will come through a new subsidiary company that plans to launch in 2Q 2016.

magicJack will join a growing crowd of hosted IP service providers who target businesses with lower cost, but feature rich communications services. “The new SMB subsidiary will leverage magicJack’s ultra-low cost network infrastructure and proprietary telecom software to deliver easy-to-buy, simple-to-use VOIP services to small- and medium-sized businesses at disruptive prices,” reports magicJack in a press release.

magicJack SMB Plans
magicJack says they will invest up to $12 million in the new subsidiary and expects to generate annual ‘exit’ revenues of $15 – 20 million by 2017, projecting double digit year-over-year revenue growth in subsequent years.

“We are pleased to be extending our value proposition for enterprise beyond the hotel initiative which we launched in Q4 2015,” said Gerald Vento, President and CEO of magicJack VocalTec in a press release.  “We believe we are well positioned to strongly compete for market share in the SMB VOIP category, which is expected to experience continuing growth for years to come.”

magicJack helped pioneer the residential VoIP market through aggressive sales and marketing tactics for its flagship device that connected home phones to their VoIP network. Their aggressive growth did not come without controversy.

They’ve been involved in high profile disputes regarding access charges and rural call completion problems. They’ve recently made moves into mobile integration with emphasis on mobile apps.

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