The Evolution Of International Calling Cards

Prepaid calling card was first introduced in the Europe in the mid 1970s

. Surprisingly, the technology took 11 long years to travel to the United States. However, the phone card industry grew at a rapid and exponential state after that. Today, prepaid international calling cards are sold in over 185 countries all over the globe.

There are some interesting tidbits about calling cards.

The first calling card was invented by a company, not connected to the telecommunications industry. SIDA invented phone cards in the fall of 1975 but was a manufacturer and supplier of vending machines.

Prepaid calling cards were used in Italy in 1976 to deal with the severe coin shortage problem. The cards had a magnetic strip on the back and could be used only in special phones. They were too thin and frequent jamming problems were reported.

World Telecom Group is the first company to launch a significantly popular and effective calling card in the United States. In 1987, a consortium formed by Siemens and General Electric Company issued prepaid calling cards with an indigenous magstripe technology. AT&T entered the prepaid calling card market in 1988 and the first international calling cards originated in Hawaii.

Industry wide revenues for overseas calling cards reached a whopping $12 million in 1992 with industry experts making projections that the number would double that amount in the next few years. Their predictions were proven wrong. The prepaid calling cards and international calling cards sales exceeded $25 million, more than double the revenue achieved in 1992, in the very next year.

The sales of long distance phone cards exceeded a whopping $250 million in 1994, showing exponential growth and making calling cards business a popular sector for new entrepreneurs. By 1997, the sales of prepaid overseas calling cards had reached an unprecedented $1 billion. It is expected that sales will reach more than $ 25 billion and there is no end to expansion in sight, yet.

The international calling cards market is growing today at a pace that was never envisaged in the late 90s. There are literally hundreds of international providers to choose from which puts you in an advantageous position because you have lots of options to choose from. There are important things to consider before making the right choice.

Destination, call duration and frequency of calls, connection quality and recharge facilities and the international calling rates are some of the features you must look at closely before choosing a service provider. The decision will also be influenced by the use of the card for business or personal purpose. If you are a frequent traveler, you must choose a card that in the cheapest roaming rates.

Figuring how to choose the right international calling cards in an oversaturated market can be a daunting task. It is important to research the options available before making the best choice.

by: Reliance Global

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