| In 1975 the idea of calling cards was brainstormed. | | | | caught the major telecom companies off guard, while |
| One year later, in 1976 phone cards were released in | | | | they were promoting long distance services, and took |
| Italy for public use. They were originally created as a | | | | a large portion of the market. |
| way of dealing with the on going coin shortage | | | | Innovative telecommunication companies quickly |
| problem. They also created an easy way to make | | | | realized the uniqueness of calling cards. That in order |
| phone calls from a pay phone without change. | | | | to use the card, the customer must look down and |
| It wasn't until 1987 that calling cards became available | | | | read the information written on the card. |
| to the public in the United States. World Telecom | | | | Telecommunication companies began selling all sorts of |
| Group at the time was the dominating player in the | | | | advertising on phonecards. Companies would purchase |
| industry with no major competition. In 1990 New York's | | | | and label calling cards with their own names as |
| Regional Bell Operating Company decided to launch a | | | | promotional material. They were passed out as prizes, |
| calling card campaign with the first non-magnetic | | | | incentives and tourist souvenirs. |
| based phone cards. Instead their prepaid phone cards | | | | Through the mid to late 90's the calling card industry |
| required dialing an access number and a PIN to | | | | continued to boom. Cards were widely used by |
| terminate calls. | | | | immigrants calling home to their mother country, people |
| For the next two years more and more competitors | | | | interested in low rate domestic long distance calling |
| entered the industry and by 1992 all major companies | | | | and tourists. As a result the collect calling market saw |
| had released their own brand of calling cards. | | | | a decline in use. |
| However, they continued to heavily market their long | | | | By the year 2000 and with the help of the dot com |
| distance services as they were more profitable and | | | | boom, the United States calling card market had |
| easier then trying to convince the public to switch to a | | | | become saturated. Thousands of Internet companies |
| new, less convenient service. Industry wide sales hit | | | | launched their own brands of calling cards. Calling card |
| about 12 million dollars with huge growth potential | | | | sales hit an all time high of 3 billion dollars and continues |
| expected. | | | | to grow even today. |
| In the consumer's mind prepaid phone cards had | | | | In 2001 the industry revolutionized its self again. The |
| become an easy way to obtain discounted long | | | | first prepaid mobile phone became available. This was |
| distance services. Rates per minute were cheaper | | | | a cheap cell phone that had prepaid minutes on it. |
| then what was offered from traditional residential long | | | | After the minutes were used up, the phone could |
| distance service, credit card calls, pay phones or cell | | | | either be recharged or discarded and a new one |
| phones. In addition using a prepaid calling card provided | | | | purchased. A prepaid cell phone was all the |
| a way of putting all calling on one bill, regardless of | | | | convenience of a phone card, with out the hassle of |
| where the call was made from. Cards could be used | | | | trying to find a phone to use. Prepaid wireless phones |
| from consumer's residential lines, pay phones, work | | | | work identical to contract phones in terms of service |
| phones or even at a friend's house. | | | | quality and portability. Like the calling card market, |
| Unlike using a long distance service, where rates per | | | | analysts are predicting the prepaid mobile phone |
| minute changed depending on the time of day, calling | | | | market to increase exponentially. |
| card rates remained constant. Callers no longer had to | | | | Like the calling card industry, the prepaid mobile phone |
| be concerned about the time of day they place their | | | | industry is expected to continue thriving. Sales have |
| calls. | | | | skyrocketed to the millions since the first release on |
| By 1996 the industry had started booming. Industry | | | | prepaid phones. Last September, 2005, IDT launched a |
| wide sales had reached an all time high of one billion | | | | new brand of prepaid cell phones targeted at the |
| dollars. Smaller telecom companies began launching | | | | Latino and Hispanic population. |
| their own brands of calling cards and for a short while | | | | |