HISTORY of VOIP - 19958

1998 (VoIP evolved gradually over the next few years)

· PC to phone service offered by small companies.

· Phone to phone service soon followed (by using a computer to establish the connection)

· email, cellular (mobile), and the Internet becoming standards for global communications

By 1998, VoIP traffic had grown to represent approximately 1% of all voice traffic in the United States. Entrepreneurs were jumping on the bandwagon and were creating devices which enabled PC-to-phone and phone-to-phone communication. Networking manufacturers such as Cisco and Lucent introduced equipment that could route and switch the VoIP traffic and as a result by the year 2000, VoIP traffic accounted for more than 3% of all voice traffic.

By 1998 VOIP had reached some potential. A number of entrepreneurs started setting up gateways to allow first PC-to-Phone and later Phone-to-Phone connections. Some of these entrepreneurs started by providing customers a facility to make free phone calls using the regular phone. Every phone call which the user made had an advertisement at the beginning and at the end of the call. This service was only available to users in North America. This service allowed the users to make free long distance calls. This “free to the customer” marketing model, was sponsored by various advertising companies or agencies. These services often required the services of a PC to originate the call, although the actual communication was from ‘phone to ‘phone. At this stage, VOIP traffic represented rather less than 1% of voice traffic.

In 1998 three IP switch manufacturers introduced equipment capable of switching. At present, most IP switching and routing equipment suppliers offer VOIP as either a standard or as an option on their mid-range and up equipment.

Voice over Internet Protocol had made considerable progress by the year 1998. A number of organizations began to set up gateways to allow first PC-to-Phone and later Phone-to-Phone connections. A few of these organizations started by providing users a facility to make free phone calls using the regular phone. Each phone call that the user made started with an advertisement and also had one at the end of the call. This particular service was offered only to users in North America. This allowed the users to make free long distance calls. A number of advertising companies or agencies sponsored this “free to the customer” promotional model. These kinds of services, time and again, require a PC to originate the call, even if the actual communication is from ‘phone to ‘phone.

Three IP switch manufacturers launched equipment, during the year 1998, which was capable of being used for switching.