Phone Card

In 1975 the idea of calling cards was brainstormed. One year later, in 1976 phone cards were released in Italy for public use. They were originally created as a way of dealing with the on going coin shortage problem. They also created an easy way to make phone calls from a pay phone without change.

It wasn't until 1987 that calling cards became available to the public in the United States. World Telecom Group at the time was the dominating player in the industry with no major competition. In 1990 New York's Regional Bell Operating Company decided to launch a calling card campaign with the first non-magnetic based phone cards. Instead their prepaid phone cards required dialing an access number and a PIN to terminate calls.

For the next two years more and more competitors entered the industry and by 1992 all major companies had released their own brand of calling cards. However, they continued to heavily market their long distance services as they were more profitable and easier then trying to convince the public to switch to a new, less convenient service. Industry wide sales hit about 12 million dollars with huge growth potential expected.

In the consumer's mind prepaid phone cards had become an easy way to obtain discounted long distance services. Rates per minute were cheaper then what was offered from traditional residential long distance service, credit card calls, pay phones or cell phones. In addition using a prepaid calling card provided a way of putting all calling on one bill, regardless of where the call was made from. Cards could be used from consumer's residential lines, pay phones, work phones or even at a friend's house.

Unlike using a long distance service, where rates per minute changed depending on the time of day, calling card rates remained constant. Callers no longer had to be concerned about the time of day they place their calls.

By 1996 the industry had started booming. Industry wide sales had reached an all time high of one billion dollars. Smaller telecom companies began launching their own brands of calling cards and for a short while caught the major telecom companies off guard, while they were promoting long distance services, and took a large portion of the market.

Innovative telecommunication companies quickly realized the uniqueness of calling cards. That in order to use the card, the customer must look down and read the information written on the card. Telecommunication companies began selling all sorts of advertising on phonecards. Companies would purchase and label calling cards with their own names as promotional material. They were passed out as prizes, incentives and tourist souvenirs.

Through the mid to late 90's the calling card industry continued to boom. Cards were widely used by immigrants calling home to their mother country, people interested in low rate domestic long distance calling and tourists. As a result the collect calling market saw a decline in use.

By the year 2000 and with the help of the dot com boom, the United States calling card market had become saturated. Thousands of Internet companies launched their own brands of calling cards. Calling card sales hit an all time high of 3 billion dollars and continues to grow even today.

In 2001 the industry revolutionized its self again. The first prepaid mobile phone became available. This was a cheap cell phone that had prepaid minutes on it. After the minutes were used up, the phone could either be recharged or discarded and a new one purchased. A prepaid cell phone was all the convenience of a phone card, with out the hassle of trying to find a phone to use. Prepaid wireless phones work identical to contract phones in terms of service quality and portability. Like the calling card market, analysts are predicting the prepaid mobile phone market to increase exponentially.

Like the calling card industry, the prepaid mobile phone industry is expected to continue thriving. Sales have skyrocketed to the millions since the first release on prepaid phones. Last September, 2005, IDT launched a new brand of prepaid cell phones targeted at the Latino and Hispanic population.

In 1975 the idea of a prepaid phone card was first brainstormed by SIDA; a vending machine manufacturer and distributor located in Italy. In the fall of 1975 SIDA sought alternative means to using coins to operate pay phones. At the time there was a shortage of medal coins in Italy and pay phone vandalism was becoming overbearing. Phones were often being destroyed, or stolen.
   
Just a few months later, in early 1976 came the release of the first phone card. Cards were printed on thin cardboard with a magnetic strip as result of dealing with the coin shortage. Pay phone users would insert the card into the pay phone and it would start deducting minutes from your card. Like many new products, problems arose from the first batch of phone cards. They were to thin and consistently jammed the pay phone.

Just one year after the introduction of phone cards, their novelties had spread across the continent. By 1977 Austria, France, Sweden and The United Kingdom were among the first in Europe to adapt to the new phone card system.

About five years later in 1982, prepaid phone cards were introduced in Japan. Similar to Europe, Japan was also having a coin shortage problem. Therefore, using a calling card was an easy solution to their problems. Nippon Telephone and Telegraph, a prominent telecommunications company in Japan, was the first company to release phone cards. They were sold throughout the subway in Tokyo and Osaka.

Since the invention of phone cards, companies throughout Europe and Japan continuously worked to improved the quality. In 1984 the first chip-based "smart cards" were introduced in France.

Almost ten years after, the eastern world had been successfully using phone cards they were introduced to the United States in 1987 by World Telecom Group. Siemens and General Electric were responsible for the distribution of the cards. Using their own technology they created a magstripe, which was an upgrade from the European version of smart cards. The magstripe is commonly seen today on the backside of credit cards, the magnetic strip. The magstripe contains a variety of information, including your name, card number, address and more.

The development and practicality of calling cards continued to grow. In 1988 Dr. Steve Hiscocks assembled the first calling card catalog. It was distributed in England to prepaid phone card collectors.

The following year, major United States telecom provider AT&T joined the prepaid calling card world. They began to mass product phone cards.

Just two years after calling cards have become prominent (1989) in the contiguous United States they were released in Hawaii.

In 1990 New York's Regional Bell Operating Company (RBOC) created the first non-magstripe phone card. These newly invented phone cards work similar to phone cards today. They require dialing a toll free access number and using a PIN (Personal Identification Number) to place charges on your account. The new system provides more versatility with phone cards. Allowing use any phone nationwide.

For the next few years phone cards continue to prosper. By 1992 most major telecommunication companies had released their own brand of phone cards. Cards were no longer using the magstripe and had completely switched over to an access number and PIN.

Like the dot com boom, the phone card market exploded. Industry-wide revenues reached 12 million dollars. While sales for future years were expected to double. Just one year later in 1993 calling card sales reached an unpredicted high of 25 million dollars. Sales continued to grow through the mid 90s reaching 650 million dollars by 1995.

Between 1996 and 2000 sales continued to rise exponentially soaring over 3 billion dollars.

With a diverse marketing and unlimited client potential the calling card industry continued to skyrocket. By 2000 even smaller based telecommunication companies had released their own calling cards. They could be found on the Internet or in the post office, super market, convenience store and gas stations.

Then in 2001 the industry changed again with the release of the first prepaid cell phone. These phones work similar to calling cards. The entire phone and minutes are prepaid. Prepaid cell users purchase recharge cards for their phones.

Prepaid phone cards are useful to lots of people especially to students and travelers. These people use prepaid phone cards to communicate with their loved ones and friends.

There are plenty of ways on how to communicate with your loved ones and friends like by sending emails, chatting with them, sending letters through postal mail. But nothing beats calling and talking with them, it’s so nice to hear their voices.

Given that it requires you to travel a lot with your work so you will finally realize how important telephone and prepaid phone card in your daily lives.

Indeed, you are far from your family and friends but you still find ways to communicate with them or even talk to them, so you need prepaid phone card. Now, you realize how grateful you are having prepaid phone card, because you could contact your family and friends wherever you are.

There are plenty of prepaid phone cards and each differs with rates, prices and services. There are prepaid phone cards that offer local coverage and even international ones. Each prepaid phone card has different features, so you have to purchase the prepaid phone card that goes well with your needs. You’re maybe asking how on earth you would know which one goes well with your needs. That’s easy but you have to give time in doing it. Gather information about the prepaid phone cards and compare each.

These prepaid phone cards have different charges and fees so you have to make sure to know the charges and fees that go with the prepaid phone cards. The charges and fees that are being charge with your prepaid phone cards are hidden charges, connection fees, maintenance fees and service fees. So you better have to know each fee. You also have to know the rates per minute or per call of each prepaid phone cards. But there are some prepaid phone cards that doesn’t offer such fees and charges. So you have to take your time to look for these prepaid phone cards.

You really have to gather information about the prepaid phone cards before purchasing any of these. There are prepaid phone cards that offers low call rate but with high surcharges and those prepaid phone cards that offers high call rate go with low surcharges. So you have weigh things out in order for you to choose the one that goes well with your needs. If you are making long calls maybe about 10 minutes and more, high call rate with low surcharges is recommended. But you usually make 5 minutes and below calls, high call rate with low surcharges is the right one for you.

Prepaid phone cards offers 24/7 coverage, so you can able to talk to your loved ones and friends any time. You can use prepaid phone card by using pay phone, or any regular phone.

Usually with prepaid phone card. you are given a PIN, which you will use when making calls. So you have to keep your PIN in a safe place. There are also prepaid phone cards that don’t have PIN, so when you are making calls you do not have to dial any PIN.  So if you do not want the hassle of dialing the PIN every time you make a call, look for prepaid phone card that doesn’t have PIN.

So just take some time to find the best prepaid phone card that goes well with your needs.