DEFERRED COSTS AND REVENUES

3 Months Ended

Mar. 31, 2016

DEFERRED COSTS AND REVENUES [Abstract]

DEFERRED COSTS AND REVENUES

NOTE 7 – DEFERRED COSTS AND REVENUES

Deferred costs and revenues to be recognized over the next twelve months are classified as current and included in the Company’s unaudited condensed consolidated balance sheets. The remaining deferred revenue amounts are classified as non-current in the unaudited condensed consolidated balance sheets.

Deferred revenues are comprised of the following at March 31, 2016 and December 31, 2015 (in thousands):

	March 31,		December 31,
	2016		2015
magicJack devices	$	8,326	$	9,352
Access right renewals		40,781		40,677
Prepaid minutes		2,536		2,525
Other		172		-
Deferred revenue, current		51,815		52,554
Deferred revenue, non-current*		49,134		50,146
Total deferred revenues	$	100,949	$	102,700

* Deferred revenues, non-current, is comprised entirely of deferred revenues originating from the sale of access right renewals.

Costs necessary to fulfill the Company’s obligations to provide broadband telephone service to new and existing customers who have purchased magicJack devices or access rights to access the Company’s servers are expensed as incurred. Such costs were approximately$3.5 million and $4.3 million for the three months ended March 31, 2016 and 2015, respectively.