This could be failure of the power adapter module.
Is your Magicjack plugged into the wall power thru a power adapter? Try bypassing the power adapter and plugging the magicjack directly into a USB port on your computer. If the magicjack work correctly now, then you have a bad power module.
I had a similar problem. My Magicjack was plugged into a wall socket. First the dial tone became inconsistent, then I could no longer make calls out, then it died completely.
I plugged the MJ into a USB socket on my computer, and it then worked normally.
Magicjack is aware of the problem and offers a replacement power adapter module. To contact them, go to
www.magicjack.com and go to "support". They will ship you a new power module for about $5.50. Some people have reported that the replacement modules from Magicjack are no better than the originals and have had repeat failures.
Consider getting a power module from another source. There are lots of AC to USB power converter modules available on Ebay for only a few dollars. Search Ebay for "magicjack power adapter".
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