The History of VoIP and Internet Telephones

Communication is a real game-changer in the business arena. The best companies make sure to optimize communication practices by keeping them simple and structured. Effective communication ensures smooth team collaboration, data sharing, and client engagement. It is essential to invest in communication solutions as miscommunication between employees can cost smaller companies a loss of $420,000 per year.

Modern communication systems have evolved dramatically in the 21st century. Right from the invention of the telephone by Alexander Graham Bell to VoIP technology, there have been many innovations in the field. Internet-based phones are the latest buzzword nowadays, and companies across the globe are investing in virtual phone systems.

VoIP technology has undoubtedly made its mark and left deep imprints on the corporate world. The VoIP industry is expected to account for over $86.20 billion in global monetary revenue. This depicts the exponential rate at which Internet-based phones are increasing the telecommunications market.

So, what exactly drives the popularity of virtual phone numbers? Well, the prime reason seems to be the low-cost companies can save between 50-75% in their international calling expenses. Since most service providers offer scalable and customized packages, organizations need to pay only for the features that they will utilize. It is a great way to build up profits and at the same time, provide a holistic customer experience.

Infographic: The History of VoIP and Internet Telephones

History Of VoIP Phones:

There is no doubt that VoIP is a futuristic technology that can have a long-lasting positive impact on any business. However, most managers are sceptical about making the transition to virtual phone solutions due to many reasons. They prefer to continue with traditional wired telephone lines despite many disadvantages. The main reason for this is a lack of awareness of Internet-based phones. People do not know much about the history of VoIP phones, and there are also a lot of myths about the implementation of virtual phone numbers. Hence, they do not wish to adopt this novel technological platform.

Today virtual telephony has set immensely high business standards for apex quality communication. However, it is essential to take a peek at the way this innovative technology entered the telecommunication field. The history of VoIP phones dates back farther than we know. Virtual phone systems would not have existed if not for three essential inventions – the internet, the telephone, and the internet protocol. VoIP was introduced through a company called Vocaltec in the year 1995. They pioneered the first internet-based phone. Their invention, known only as the Internet Phone allowed users to call each other through the internet and it was connected with speakers and a microphone. No video calls were available at that time, and both users had to be on the same software platform.

In 1996, internet voicemail applications came to life. This enabled users to send voicemails over the internet to destination phones. However, these initial years were fraught with problems. Reduced internet speed, broken voice connections, and long periods of silence were some common problems of VoIP technology in the first years.

By the year 1998, VoIP traffic accounted for only 1% of all voice calls. During this decade, voice over internet protocol continued to develop as a secure communication solution. Specialists and telecommunication experts began to use digital transmissions due to speed, agility, and low costs. Various organizations started to introduce VoIP switching software as add-ons in their routine call packages. This led to an increase in the usage rates, and by the year 2003, the number of VoIP calls grew to 25% of all voice traffic.

Late 2000 saw a phenomenal rise in the adoption of Internet-based phones. There was a complete integration of landlines, cellular softphones, and VoIP into hosted PBX systems. This meant that any device at any geographical location could be used as a business phone. It was a big step towards mobility and accessibility in business communication. In the year 2007, the first mobile VoIP App was introduced and was a big success. It was available for Android, iPhone, and Blackberry platforms.

Virtual telephony technology continued to grow at a fast pace. By the year 2008, over 80% of all new PBX lines were VoIP-based. The availability of broadband Ethernet services meant a significant improvement in call quality and led to a reduction in call expenses. VoIP has slowly evolved to a mainstream mode of business communication. By 2015, VoIP technology had carried over 100 billion minutes of mobile voice calls. Corporate organizations started recognizing the power of virtual phone numbers. They supported VoIP technology more than ever, and the popularity of internet-based phones soared to great heights.

VoIP Technology – A Futuristic Comprehensive Solution:

The advent of virtual phone solutions has taken many leaps forward in the last few years. VoIP has become an integral part of day-to-day life operations. Organizations have realized the massive growth potential of virtual phone platforms. Future market insights predict that by 2020, there will be at least 204.8 billion corporate users of virtual phone numbers.

Virtual phone systems can completely transform the way organizations connect, interact, and communicate with clients. They are the fastest way to climb up the ladder of success as they result in lower costs and happier customers. Here are some compelling advantages that organizations can accrue through internet-based phones:

Virtual phone solutions have an impressive range of business features. Voicemail, call recording, call queuing, interactive voice response, and call forwarding are some revolutionary features of business phones. They lead to a high level of productivity and seamless task flow management.

VoIP phone lines are incredibly cost-effective. Most service providers design customizable packages and modify calling prices to fit within the organizational budget. Virtual phone systems are also scalable. Hence they can expand with business requirements. It is possible to purchase extra modules at a later time, thereby making it a flexible solution.

Virtual phone platforms can help businesses establish a strong local presence. Investing in a local virtual phone number can enable organizations to compete with rival companies effectively. It gives an aura of credibility and professional image to business communication. VoIP solutions can easily ensure that organizations capture a large target audience in overseas markets, and is a must-have for companies that have offices in multiple geographical locations.

VoIP phone solutions can improve accessibility by a large extent. Employees can conduct business calls from any place, and they do not remain restricted to the physical office premises. Virtual phone numbers also make sure that clients receive better service. They enhance quality service rates as customers do not have to wait endlessly to resolve problems, issues, or complaints.

The history of VoIP phones has developed a lot in the past few decades. They are now a popular and well-established business communication tool that can boost profitability. Virtual phone platforms break geographical boundaries as they make sure that team members can make/receive calls on any device – all they require is a high-speed internet connection.

VoIP phone solutions can increase customer delight and help organizations forge long-lasting relationships with clients. It provides an open, transparent, and reliable two-way communication. Internet-based phone solutions are indeed the future of telecommunications and can positively transform any modern work environment!

Source: CallHippo