Mexico - magicJack VocalTec Ltd. has 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 percent 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."