Ooma vs. magicJack: Which VoIP Provider Is Right for Your Business?

Ooma is a cloud-based VoIP provider that helps businesses and individuals make phone calls over the Internet. It offers two services: Ooma Telo and Ooma Office.

For residential users, Ooma provides a device called Ooma Telo, which connects to your internet and allows you to use your existing home phone to make calls. With the basic service, users can make unlimited calls within the U.S. for free, only paying applicable taxes and fees. It also offers additional features, such as voicemail-to-email, call blocking, and a second line.

For businesses, Ooma offers VoIP solutions, such as Ooma Office, designed for small to medium-sized businesses. It includes features like virtual receptionists, call recording, mobile apps, and CRM integrations, which help improve customer service and enhance overall business efficiency.

• Virtual receptionist
• Call forwarding
• Call blocking
• Call park
• Voicemail-to-email
• Call analytics and reporting
• CRM integrations
• Video conferencing with screen sharing
• Auto-attendant

Ooma offers multiple subscription packages, including Ooma Home for residential users, Ooma Office for small businesses, and Ooma Enterprise for larger organizations. Each is further categorized into additional plans.

Ooma Home (Residential)

Ooma Office (Small Business)

Ooma Enterprise (Larger Business)

magicJack is a Voice over Internet Protocol (VoIP) service that enables users to make and receive phone calls over the internet, instead of using traditional phone lines. It works by connecting a USB device to a computer or a compatible phone.

magicJack is known for its low-cost model, offering unlimited calling to the U.S. and Canada. It offers features such as caller ID, call waiting, and call forwarding, which enable users to manage calls more efficiently.

magicJack also offers services for small businesses, known as “magicJack for Business”. It provides advanced features, including auto attendant, call queues, 3-way calling, and call transfer.

• Voicemail
• Call forwarding
• Automated call screening
• Call blocking
• Caller ID
• Call waiting
• Conference bridge
• Virtual fax
• Online call logs

Ooma and magicJack both provide affordable VoIP services, but they differ mainly in their target users, pricing models, and feature offerings.

Ooma is designed for a wide range of customers, including residential users, small businesses, and large enterprises. However, magicJack is better suited for individuals or home-based users and small businesses.

Ooma involves a higher device price and monthly subscription costs, especially for business plans. magicJack is more budget-friendly, offering a low device cost and an annual service fee.

Ooma offers more features and may require more setup, particularly for business or enterprise users. However, magicJack is easy to set up and use, especially for individuals with minimal technical knowledge.

Ooma allows you to manage calls across desktops, mobile devices, and desk phones with cloud syncing. However, magicJack is limited to its device and mobile app, making it less adaptable for complex or large-scale use.

Ooma offers advanced business features, including call routing, IVR, voicemail-to-email, video conferencing, and custom greetings. Similarly, magicJack includes features such as call forwarding, voicemail, and caller ID, but lacks rich, business-focused tools.

If you’re looking for a feature-rich system for business or team collaboration, Ooma is the better fit. If your goal is simple, low-cost calling with minimal setup, magicJack might be best. 

Here’s a quick breakdown to help you choose:

Pick Ooma If

• You need a reliable phone system for your business or office.
• You want advanced features like call routing, conferencing, CRM tools, and voicemail transcription.
• You prefer strong technical support and professional service options.

Pick magicJack If

• You need a simple phone service for home or a small business.
• You want a low-cost, plug-and-play solution.
• You're looking for a low-cost solution with no monthly contracts.

Both Ooma and magicJack offer valuable VoIP services, but they cater to different user needs. If you're a home user or a solo entrepreneur seeking basic, budget-friendly calling, magicJack might be enough. On the other hand, if you're running a growing business and need robust features, integrations, and scalability, Ooma is a more suitable but costlier option.