Calling cards History and Growth overtime

Calling cards are prepaid long distance service from telecom companies. It works on IP-telephony basis.

IP-telephony

IP-telephony is a modern technology providing the alternative method of a phone call connection by internet on low rates. This is more popular because the call rates are declining faster in this area than in a post billed phone call service.

History of calling card

The history of calling cards began from the destruction of coinphones, caused by a scarcity of coins in Italy during 1970’s.

Now the cards for IP-telephony are in huge demand all over the world. Today, one can use a phone card to call across 185 countries in the world. The anticipated sale for calling card industry is $10 Billion per year by 2010.

Growth of calling cards overtime

Born in mid seventies

Calling cards were invented in Europe by the company called SIDA in 1975.

Introduction of magnetic strip-1976

Calling Cards were introduced with a magnetic strip on the back for use in special phones to combat the coin shortage1976.

Extended to Europe-1977

Calling cards using magnetic strip approval extended to the rest of Europe especially Austria, Sweden, France, and The United Kingdom in 1977.

Inductive technology applied-1978

Nelson G.Bardini invented inductive technology in Brazil. The system uses a series of coils embedded in the card which blows when the card is used up in 1978.

Extended to Asian region-1982

Japan’s Nippon Telephone and Telegraph introduced the first Japanese phone card in 1982. They were considerably handier and were sold to innumerable daily subway riders in Osaka and Tokyo.

Introduction of smart cards-1984

France experimented with chip-based “smart cards” in 1984.

Introduced In America-1987

World Telecom Group is the first company to launch a significant phone-card product in the United States in 1987. Siemens and GEC (General Electric Company) developed and issued cards with magnetic stripe technology.

Invention of non magnetic based calling card-1990

New York’s RBOC (Regional Bell Operating Company) offers the first non magnetic based calling card in the U.S in 1990. These were prepaid calling cards using PIN (Personal Identification Number) for identification.

Revenue reached $12 million-1992

All of the major regional and long distance phone companies including Sprint, and many of the smaller carriers were offering pre-paid phone cards. Industry-wide revenues reached $12 million with projections calling for double that over the next several years. This projection proved to be drastically short of stuffs to come.

Phone card sales exceed $25 Million in 1993 and $250 Million in 1994.

Introduction of chip-based prepaid cards-1995

In 1995 US West provided the first chip-based prepaid cards. Sprint brought “FONCARD”. Sales hit $650 million.

American Express tested a ‘Trial Prepaid Calling Card’ in 1996. Calling card sales reached $3 Billion in 2000

Additional features attracts more-2003

In 2003 internet shops selling telephone cards cropped up. Additional features of cards like Web callback, SMS refill, Speed Dial, Permanent PIN’s, Prepaid Conference Calls entices the customers.

Today-2008

There are innumerable telecom companies providing calling card service to the international callers world over.