VoIP – A Brief History

The history of VoIP shows that this technology started as far back as 1995 when a small company called Vocaltec released, what was believed to be, the first internet phone software. This VoIP software was designed to run on a home PC and much like the PC phones used today, it utilized sound cards, microphones and speakers. The software was called "Internet Phone" and used the H.323 protocol instead of the SIP protocol that is more prevalent today. Vocaltec had initial success with Internet Phone, and had a successful IPO in 1996. It was the Skype of the mid 90s. A major drawback in 1995 was the lack of broadband availability, and as such, this software used modems which resulted in poor voice quality when compared to a normal telephone call. However, this was still a major milestone as it represented the first ever IP Phone.

VoIP technology grew over the next two or three years. People began to see the potential for this cheap alternative and experimented with different ways of using and improving this technology. Larger telecommunications companies started to think about developing VoIP services, and how it could also be used for business rather than just a cheap, poor quality service.

With early VoIP it was only possible to make calls from PC to PC. As the technology improved it became possible to make calls from a PC to telephones. This allowed users to call anyone, but they would have to use their PC to make these calls. It is now possible to use an internet connection but talk through a telephone or telephone like device, using VoIP adapters and VoIP phones. VoIP adapters allow users to use their existing telephone to talk over IP, and VoIP phones are devices that use the internet connection but look and feel just like a telephone. These have developed as providers have looked to improve not just VoIP's quality but also the user experience, meaning it is more likely to be taken up by a mass market.

VoIP's quality is something that has improved significantly. The growing popularity of broadband has been crucial to this. A high percentage of internet users now use broadband, which is important as the internet connection is the most important factor in the quality of VoIP. This has meant that more people have access to quality VoIP. The growing competition within the VoIP industry has meant they are all trying to improve quicker than their competitors. This has lead to a better all round service for customers. There are now many business VoIP providers who provide a quality service, while still cheaper than the equivalent telephone providers.

Skype is probably the best known cheap VoIP provider. Calls with Skype are free PC to PC, and calls from a PC to a telephone are very cheap. It is mostly useful for personal use calling friends and family, but not suitable for business. There are signs though, that they are looking to move into this area.