| In 1975 the idea of a prepaid phone card was first | | | | The development and practicality of calling cards |
| brainstormed by SIDA; a vending machine | | | | continued to grow. In 1988 Dr. Steve Hiscocks |
| manufacturer and distributor located in Italy. In the fall of | | | | assembled the first calling card catalog. It was |
| 1975 SIDA sought alternative means to using coins to | | | | distributed in England to prepaid phone card collectors. |
| operate pay phones. At the time there was a | | | | The following year, major United States telecom |
| shortage of medal coins in Italy and pay phone | | | | provider AT&T joined the prepaid calling card |
| vandalism was becoming overbearing. Phones were | | | | world. They began to mass product phone cards. |
| often being destroyed, or stolen. | | | | Just two years after calling cards have become |
| Just a few months later, in early 1976 came the | | | | prominent (1989) in the contiguous United States they |
| release of the first phone card. Cards were printed on | | | | were released in Hawaii. |
| thin cardboard with a magnetic strip as result of dealing | | | | In 1990 New York's Regional Bell Operating Company |
| with the coin shortage. Pay phone users would insert | | | | (RBOC) created the first non-magstripe phone card. |
| the card into the pay phone and it would start | | | | These newly invented phone cards work similar to |
| deducting minutes from your card. Like many new | | | | phone cards today. They require dialing a toll free |
| products, problems arose from the first batch of | | | | access number and using a PIN (Personal Identification |
| phone cards. They were to thin and consistently | | | | Number) to place charges on your account. The new |
| jammed the pay phone>. | | | | system provides more versatility with phone cards. |
| Just one year after the introduction of phone cards, | | | | Allowing use any phone nationwide. |
| their novelties had spread across the continent. By | | | | For the next few years phone cards continue to |
| 1977 Austria, France, Sweden and The United | | | | prosper. By 1992 most major telecommunication |
| Kingdom were among the first in Europe to adapt to | | | | companies had released their own brand of phone |
| the new phone card system. | | | | cards. Cards were no longer using the magstripe and |
| About five years later in 1982, prepaid phone cards | | | | had completely switched over to an access number |
| were introduced in Japan. Similar to Europe, Japan | | | | and PIN. |
| was also having a coin shortage problem. Therefore, | | | | Like the dot com boom, the phone card market |
| using a calling card was an easy solution to their | | | | exploded. Industry-wide revenues reached 12 million |
| problems. Nippon Telephone and Telegraph, a | | | | dollars. While sales for future years were expected to |
| prominent telecommunications company in Japan, was | | | | double. Just one year later in 1993 calling card sales |
| the first company to release phone cards. They were | | | | reached an unpredicted high of 25 million dollars. Sales |
| sold throughout the subway in Tokyo and Osaka. | | | | continued to grow through the mid 90s reaching 650 |
| Since the invention of phone cards, companies | | | | million dollars by 1995. |
| throughout Europe and Japan continuously worked to | | | | Between 1996 and 2000 sales continued to rise |
| improved the quality. In 1984 the first chip-based "smart | | | | exponentially soaring over 3 billion dollars. |
| cards" were introduced in France. | | | | With a diverse marketing and unlimited client potential |
| Almost ten years after, the eastern world had been | | | | the calling card industry continued to skyrocket. By |
| successfully using phone cards they were introduced | | | | 2000 even smaller based telecommunication |
| to the United States in 1987 by World Telecom Group. | | | | companies had released their own calling cards. They |
| Siemens and General Electric were responsible for the | | | | could be found on the Internet or in the post office, |
| distribution of the cards. Using their own technology | | | | super market, convenience store and gas stations. |
| they created a magstripe, which was an upgrade from | | | | Then in 2001 the industry changed again with the |
| the European version of smart cards. The magstripe is | | | | release of the first prepaid cell phone. These phones |
| commonly seen today on the backside of credit cards, | | | | work similar to calling cards. The entire phone and |
| the magnetic strip. The magstripe contains a variety of | | | | minutes are prepaid. Prepaid cell users purchase |
| information, including your name, card number, address | | | | recharge cards for their phones. |
| and more. | | | | |