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magicJack Announces Testing of New Service Offering With Telefonica/Movistar in Mexico

  • Service consists of a U.S. phone number with unlimited inbound calling
  • Currently test pricing service at $30 MXP per week
  • Launched with Movistar, Telefonica’s mobile operator in Mexico
  • Service and customer payment are integrated with Telefonica/Movistar’s systems
  • Contract with Telefonica signed in Q4 2015

WEST PALM BEACH, Fla. and NETANYA, Israel, Feb. 22, 2016 (GLOBE NEWSWIRE) -- magicJack VocalTec Ltd. (Nasdaq:CALL), a leading VoIP cloud-based communications company, today announced the launch of a new Mexico-based service offering with Movistar, Telefonica’s mobile operator in Mexico.

The new service offering, named “Call U.S.,” will be available to Movistar’s over 20 million mobile customers, enabling them to purchase a U.S. phone number through which they can receive unlimited inbound calls from friends, relatives or business contacts based in the U.S. The service is currently being price tested at $30 Mexican pesos per week (approximately U.S. $2 per week).

The service is integrated with Telefonica/Movistar’s systems allowing customers to pay through the same channels that they use to pay for their core Movistar wireless service. magicJack is working with Telefonica and Movistar to determine whether unlimited outbound calling can be added to the service through Movistar’s systems.

Under the terms of magicJack’s agreement with Telefonica/Movistar, which was signed in Q4 2015, magicJack shares meaningfully in any net revenue generated by the service (after deduction of applicable IVA and other taxes).

While “Call U.S.” will be made available to all Movistar customers, the service is primarily targeting non-smartphone users, which do not have the ability to download free mobile calling apps and are estimated to account for at least 85% of Movistar’s customer base in Mexico.

“We are pleased to be testing this new service offering with Telefonica and Movistar in Mexico,” said Gerald Vento, President and CEO of magicJack VocalTec. “While there are a number of unlimited outbound calling options for mobile customers in Mexico, we are eager to test the market’s interest in having a U.S. phone number linked to a non-smartphone, enabling Movistar mobile customers to receive unlimited inbound calling from friends, relatives and business contacts located anywhere in the U.S.”

Forward Looking Statements

This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, contained in this press release, including statements about the new “Call U.S.” service offering, the current or future pricing of the service offering, any projected revenues from the service offering, whether the service will be successful, are forward-looking statements. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. These factors include, among other things: changes to our business resulting from increased competition; our ability to market the “Call U.S.” service offering; our ability to price the service offering at levels that will be attractive to Movistar mobile customers; other competitive service offerings in Mexico; our ability to retain any customers that subscribe to the service offering; changes in general economic, business, political and regulatory conditions; our ability to maintain our costs of the service offering, including call termination costs, at levels low enough to generate adequate gross margins; potential liability resulting from pending or future litigation, or from changes in the laws, regulations or policies; the degree of legal protection afforded to our products; changes in the composition or restructuring of us or our subsidiaries and the successful completion of acquisitions, divestitures and joint venture activities; and the various other factors discussed in the "Risk Factors" section of our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Such factors, among others, could have a material adverse effect upon our business, results of operations and financial condition. We do not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

About magicJack VocalTec Ltd.

magicJack VocalTec Ltd. (Nasdaq:CALL), the inventor of magicJack and a pioneer in Voice over IP (VoIP) technology and services, is a leading cloud communications company. With its easy-to-use, low cost solution for telecommunications, the Company has sold more than 11 million award-winning magicJack devices, now in its fifth generation, has millions of downloads of its free calling app, and holds more than 30 technology patents. magicJack is the largest-reaching CLEC (Competitive Local Exchange Carrier) in the United States in terms of area codes available and number of states in which it is certified.


Contact: Seth Potter Investor Relations 561-749-2255 ir@vocaltec.com

Source:magicJack VocalTec Ltd.