FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011 Page: 5,744
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YMax to the premises of any non-carrier/non-ISP persons or entities.'0 YMax has no customers who
purchase local exchange service from YMax's state tariffs." [Redacted confidential information
regarding YMax's business operations and network configuration.]'2 YMax does not assess or collect
fees or charges associated with the Universal Service Fund ("USF").'3 YMax does not assess or collect
any End User Common Line ("EUCL") charges.'4 YMax does not have any present capability to
effectuate the selection of a preferred interexchange carrier ("PIC") and thus does not assess or collect
any PIC charges.'-
4. YMax is able to participate in the transmission of the telephone calls at issue here only
through its working relationship with its close affiliate, MagicJack, L.P.6 MagicJack, L.P. markets and
sells for $39.95 a device called the magicJack,"7 which provides the ability to use the Internet to make
and receive calls throughout most of North America.'" The magicJack device itself consists of a USB
"dongle" on one end that plugs into a computer's USB port, and an RJ- 11 telephone jack on the other end
into which an ordinary landline telephone can be plugged.19 MagicJack, L.P. relies on YMax to obtain
telephone numbers and interconnection to the public switched telephone network ("PSTN") for
magicJack purchasers.20 The record indicates that virtually all of the calls at issue involved the use of a
"' See, e.g., Pavol Dep. at 113; YMax Initial Brief at 11-12; YMax Answers to Interrogatories at 5 (Response to
AT&T First Set of Interrogatories No. 1); YMax Answers to Interrogatories at 17 (Response to AT&T Second Set of
Interrogatories No. 3); Borislow Decl. at 4; Appendix B at 2. "ISP" means Internet Service Provider.
" See, e.g., Supp. Answer at 2; Joint Statement at 4, 24; Borislow Dep. at 143-55; YMax Initial Brief at 8-9;
YMax Answers to Interrogatories at 17 (Response to AT&T Second Set of Interrogatories No. 3); Pavol Dep. at 101.
" See, e.g., YMax Answer to Interrogatories at 17 (Response to AT&T Second Set of Interrogatories No. 3):
Borislow Dep. at 153-55; Appendix B at 2.
3 See, e.g., YMax Answers to Interrogatories at 14 (Response to AT&T First Set of Interrogatories No. 7); YMax
Initial Brief at 8-9; Pavol Dep. at 118; Appendix B at 3.
14 See, e.g.. Joint Statement at 5. 32. 6. 43; YMax Answers to Interrogatories at 14 (Response to AT&T First Set
of Interrogatories No. 7); YMax Initial Brief at 8-9; Pavol Dep. at 118, 127-30, 150; Appendix B at 3.
1' See, e.g., YMax Answers to Interrogatories at 15 (Response to AT&T First Set of Interrogatories No. 7); Pavol
Dep. at 117; Borislow Dep. at 185-90; YMax Initial Brief at 8-9.
'6 See notes 17. 25 infra; Joint Statement at 3, 13. The sole member of MagicJack, L.P. is YMax Corporation,
which is the sole stockholder of YMax Communications Corp., the defendant here. See Pavol Decl. at 8 n.2. The
same person serves as the chief executive officer ("CEO") of both MagicJack, L.P. and YMax Communications
Corp. See, e.g., Borislow Dep. at 7, I1.
"7 Joint Statement at 3, 14, 4, 16. For purposes of this Order, we use the terms "magicJack" or "magicJack
device" to refer to the magicJack device, and we use the term "MagicJack, L.P." to refer to the entity that markets
and sells the magicJack device.
'" Joint Statement at 4, 16; MagicJack L.P. FAQs. attached as Ex. 15 to Complaint ("MagicJack FAQs"). To
continue using the magicJack device after the first year of use, an annual renewal fee of $19.95 is required.
MagicJack FAQs. As previously noted, YMax assesses no tariffed fees or charges on any magicJack purchaser for
any of the calls enabled by the magicJack device. Although the purchaser of a magicJack device has the option to
buy prepaid minutes for certain international outbound calling, the magicJack purchaser is not required to do so, and
no aspect of this optional prepaid plan is at issue in this proceeding. See, e.g., Joint Statement at 28, 50.
19 Joint Statement at 3, 15.
20 See, e.g., Joint Statement at 3, 10; Borislow Dep. at 77, 150, 177.
2 Although YMax declined to stipulate that virtually all of the calls at issue involved the use of a magicJack device,
YMax failed to heed Staff's directive to "explain, in detail" the basis for declining to so stipulate. See Letter from
Alexander P. Starr, Chief, Market Disputes Resolution Division, Enforcement Bureau, to David Lawson, counsel for
Federal Communications Commission
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United States. Federal Communications Commission. FCC Record, Volume 26, No. 7, Pages 4843 to 5761, March 28 - April 08, 2011, book, April 2011; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc52169/m1/916/: accessed August 18, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.