• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

A History of Digital Comm: When Was the First Video Teleconference?

By Sabado Domingo

video teleconferenceThe history of video conferencing is a long and intriguing one. Just like most complex technologies, it went through numerous phases in fits and starts. Today, this type of business communication has become the norm.

So how did video conferencing evolve? Here’s a brief overview:

The Early History of Video Conferencing

The first Picturephone test system was developed in 1956. The system designed by AТ&T was capable of transmitting one image per several seconds. A more advanced model was presented in 1964 but people were unhappy with the bulkiness of the equipment and the small size of the image.

The commercial Picturephone service was launched in 1970. Though AT&T predicted incredible success for the system, it was still too bulky and too expensive to be accepted by the general consumer.

The video conference possibility became popular only after the development of the computer, the enhancement of resolution, graphics and video communication functionality.

Video Conferencing Comes to the Commercial Market

The first video conferencing breakthrough was made in the early 1980s. Compression Labs was the company that introduced its commercial video conferencing product in 1982. The product, however, was tremendously expensive and it required vast resources to function properly.

PictureTel started rivaling Compression Labs after announcing the launch of yet another video conference system in 1986. In just a few years, the price of the technology decreased dramatically from the 250,000 dollars that Compression Labs demanded for its product to only 80,000 dollars.

Apart from these systems, several other companies tried to launch video conference possibilities that were much more affordable and created especially for household usage. A few key developments in the technology were also completed for military purposes.

Technical advances and the prominence of the internet made video conferencing a much more viable possibility in the 1990s. The first personal computer-based video conference system was introduced in 1991. Its creator was IBM. PicTel was a black and white communication platform but its cost was quite low in comparison to prior experiments.

A revolutionary breakthrough was made several months later during the same year. DARTnet managed to connect a transcontinental IP network. More than 12 sites in the US and the UK were connected successfully. DARTnet was later on renamed to CAIRN system and it still exists today.

New Developments: Video Conferencing Today

The Internet and the affordability of the technology led to the quick evolution of the video conferencing field. Today, it is widely accessible and used by many businesses, institutions and organizations that need communication simplicity and the ability to connect people at several locations in a simple, practical and affordable way.

High speed Internet access became affordable in many locations across the globe by 2003. The general buyer got access to affordable web cameras, microphones and other sound equipment. A number of free software possibilities came in existence, taking digital video communication to the next level.

Cloud-based solutions have boosted the practicality of online conferencing even further. The cost decreased noticeably and some of the previously existing restrictions disappeared through the use of cloud-based technology.

The use of solutions like Blue Jeans Network video conferencing decreased the price of the technology by nearly 75% compared to hardware-based solutions.

The Future of Video Conferencing

Mobile and social will be determining for the future of video conferencing. Just a couple of years ago, people needed to sit in front of a computer for video communication to take place. Today, such digital encounters happen on-the-fly; tablets and smartphones have changed the rules of the game and boosted the mobility of online conferences.

The Facebook generation’s attitude towards online communication are having a huge impact on technology use and the rapid evolution of the sector.

As the workplace also evolves, so do the methods of communicating with partners, answering customer inquiries, organizing seminars, and even conducting job interviews. The affordability and general availability of these systems is already expanding beyond the high-level corporate circles and simplifying everyday-communications.

Here’s the bottom line: According to Infonetics, the video conferencing market will grow to 5.4 billion dollars by 2015 — and the market’s fastest growing segment is the videophone. These trends clearly indicate that the future of video conferencing and the important role it’s going to play in the years to come.

Photo Credit: stock photo

July 30, 2014

Comments

  1. 1

    Diana says

    This is a really fantastic article! I agree. Video conferencing has revolutionized the way we do business. Rapid adoption and use of video conferencing tools like webex, R-HUB HD video conferencing servers, gomeetnow, gotomeeting etc. by businesses and organizations worldwide have helped them in increased cost reduction, better client interaction, increased productivity etc.

The Question of the Week:

Did you buy any fireworks to celebrate Independence Day this year?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: Born on the 4th of July
  • How To Start Investing In Cryptocurrencies
  • Grandfather Says: The Travails of Working with Stone
  • 5 Expert Tips for Saving Money with a Credit Card
  • How to Implement Strategic Planning Processes
  • Is It Better to Borrow From Your 401k or Take an Early Withdrawal?
  • When It Doesn’t Pay to Buy Big-Ticket Items on Sale
  • Black Coffee: Digital Castles in the Air
  • How to Improve Your Sports Betting Success
  • Toyota Has Started Accepting Bitcoin for Payment

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 40,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. The 6 Most Valuable Grocery Store Products
  2. 2. Series I Savings Bonds Are Now Paying 9.62%; Here Are Their Pros & Cons
  3. 3. 25 Examples of Shrinkflation That No Longer Fool Consumers
  4. 4. 7 Big Reasons Why a Roth IRA Isn’t the Best Way to Save for Retirement
  5. 5. 3 Ways That Great Sleep Helps You Get Richer
  6. 6. What’s the Fastest Way to Pay Down Your Mortgage Early?
  7. 7. How to Save Money on Dental Care So You Won’t Go Broke at the Dentist
  8. 8. Historical Gold & Silver Benchmarks for Wages and Commodity Prices
  9. 9. Tip Inflation: We’ve Got Nobody to Blame But Ourselves
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2022 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2022