You may remember at CES this year we had a chance to meet with MagicJack and see the prototype for their Femtocell technology, which they said would be coming out in the first half of the year. Obviously, they missed that projected deadline; but don’t count their Femtocell product dead yet.

There’s been some controversy and problems of course, the CTIA says that the product is illegal, MagicJack says it’s not, and the FCC is still deciding what’s going to happen. Assuming the FCC says that the product is legal, MagicJack has itself well positioned through a recent merger with the company responsible for inventing VoIP in the first place. It’s definitely going to be interesting to see what happens, and if MagicJack wins, prepaid cell phones are going to get a whole lot more popular.

[via Business Insider]