More than 30 years after its development, calling cards still exist and they have been improved on a large scale.  Prepaid calling cards now use smart chips instead of magnetic strips. Also, calling cards can be used with any phone, anywhere and at any time.

In spite of its improvements, debate about its convenience goes on.

Advantages and Disadvantages of calling cards

Handy:

A single calling card can hold a hundred dollars worth of prepaid phone credits. It’s slim and almost paper-like structure; give users the convenience of putting it in any of the pockets.

Excellent features:

 The basic feature of prepaid phone cards is that you can-

• Call using any phone, anywhere at anytime
• Mobile phones with no talk time can use a prepaid calling card to call anybody in the world

Major advantages of calling cards-

• Consistency of the service provider
• No concealed fees
• Connectivity
• Easy to buy
• Easily available
• Available in smaller price range also
• Offers services to most countries as almost standard rates
• Works from cell phones also
• Has the same rate at anytime -day or night
• Works from any place to any other place in the world
• Easy to use
• 24/7 customer support
• Allows different currencies
• Allows bank transfers

Major disadvantages-

Disadvantage of easily losing or misplacing:

 It means losing a hundred bucks in a moment.

Scams and fraud:

Scams happen when a person asks you the information about your card- like a few digits- which you unsuspectingly reveal what they want.  From the technological convenience a few digits can mean a whole lot of things and before you know it, you have been scammed. There are also calling card companies and brands that charge more than they should do and thus fraud takes place.

Lack of reliability of the service provider:

The calling card service providers do not inform customers properly regarding call rates that certain calling cards have.

Conclusion

 As you may peruse, most of the time the advantages of prepaid phone cards also have opposing disadvantages and vice-versa. It means is that convenience with prepaid phone cards is not absolute. It all depends on who is using it and ones preference.

Calling cards are prepaid long distance service from telecom companies. It works on IP-telephony basis.

IP-telephony

IP-telephony is a modern technology providing the alternative method of a phone call connection by internet on low rates. This is more popular because the call rates are declining faster in this area than in a post billed phone call service.

History of calling card

The history of calling cards began from the destruction of coinphones, caused by a scarcity of coins in Italy during 1970’s.

Now the cards for IP-telephony are in huge demand all over the world. Today, one can use a phone card to call across 185 countries in the world. The anticipated sale for calling card industry is $10 Billion per year by 2010.

Growth of calling cards overtime

Born in mid seventies

Calling cards were invented in Europe by the company called SIDA in 1975.

Introduction of magnetic strip-1976

Calling Cards were introduced with a magnetic strip on the back for use in special phones to combat the coin shortage1976.

Extended to Europe-1977

Calling cards using magnetic strip approval extended to the rest of Europe especially Austria, Sweden, France, and The United Kingdom in 1977.

Inductive technology applied-1978

Nelson G.Bardini invented inductive technology in Brazil. The system uses a series of coils embedded in the card which blows when the card is used up in 1978.

Extended to Asian region-1982

Japan’s Nippon Telephone and Telegraph introduced the first Japanese phone card in 1982. They were considerably handier and were sold to innumerable daily subway riders in Osaka and Tokyo.

Introduction of smart cards-1984

France experimented with chip-based “smart cards” in 1984.

Introduced In America-1987

World Telecom Group is the first company to launch a significant phone-card product in the United States in 1987. Siemens and GEC (General Electric Company) developed and issued cards with magnetic stripe technology.

Invention of non magnetic based calling card-1990

New York’s RBOC (Regional Bell Operating Company) offers the first non magnetic based calling card in the U.S in 1990. These were prepaid calling cards using PIN (Personal Identification Number) for identification.

Revenue reached $12 million-1992

All of the major regional and long distance phone companies including Sprint, and many of the smaller carriers were offering pre-paid phone cards. Industry-wide revenues reached $12 million with projections calling for double that over the next several years. This projection proved to be drastically short of stuffs to come.

Phone card sales exceed $25 Million in 1993 and $250 Million in 1994.

Introduction of chip-based prepaid cards-1995

In 1995 US West provided the first chip-based prepaid cards. Sprint brought “FONCARD”. Sales hit $650 million.

American Express tested a ‘Trial Prepaid Calling Card’ in 1996. Calling card sales reached $3 Billion in 2000

Additional features attracts more-2003

In 2003 internet shops selling telephone cards cropped up. Additional features of cards like Web callback, SMS refill, Speed Dial, Permanent PIN’s, Prepaid Conference Calls entices the customers.

Today-2008

There are innumerable telecom companies providing calling card service to the international callers world over.