The War On Internet Phone Calls

The Death of Skype: A Look Back at the History of Internet Phone Calls and the Battle for Fair

In recent news, Microsoft has announced the shutdown of Skype, a revolutionary software that allowed for cheap and free phone calls over the internet. To commemorate this event, we are taking a look back at the history of internet phone calls and the battle for fair communication.

Key Innovations

* The first commercial internet phone software, ‘i-phone’ by VocalTec, was launched in 1995. It quickly gained popularity due to its exemption from FCC tariffs like local access charges.
* The formation of the Voice on the Net (VON) coalition, led by internet phone enthusiast Jeff Pulver, in response to attempts to ban internet phone services.
* The FCC’s “Pulver Order” in 2004, which allowed for cheap and free online phone calls to anywhere in the world.

Technical Specifications

* In the mid-90s, a prime time call to Paris from New York cost around $113 an hour (in 2025 dollars).
* The i-phone software by VocalTec allow users to make long-distance calls at a reduced cost thanks to its exemption from certain FCC tariffs.

Industry Impact

* The launch of i-phone and other similar software posed a threat to traditional long-distance telephone companies, who saw it as unfair competition.
* The VON coalition, made up of internet phone enthusiasts and tech startups, fought against attempts to rein in the technology and allow it to flourish.
* The FCC’s “Pulver Order” in 2004 allowed for the widespread use of cheap and free online phone calls, a feature that is now taken for granted.

The History

In the mid-90s, making a long-distance phone call, especially to another country, was an expensive endeavor. But, with the rise of the internet, the possibility of cheap and free phone calls emerged. This was made possible with the launch of i-phone, the first commercial internet phone software, by VocalTec in 1995. It was exempt from certain FCC tariffs, making it a cost-effective option for long-distance calls.

With the growing popularity of internet phone services, traditional long-distance telephone companies felt threatened. In 1996, the America’s Carriers Telecommunications Association (ACTA) filed a petition with the FCC to ban the sale of long-distance internet telephone services until they were regulated as ‘common carriers.’ This move was seen as an attempt to thwart the competition posed by internet phone services.

In response to this, a group of internet phone enthusiasts and tech startups formed the Voice on the Net (VON) coalition, led by Jeff Pulver. The VON coalition fought against attempts to rein in the technology and allowed it to flourish. The FCC held off on ruling on the ACTA petition, and in 1998, made statements sympathetic to online phone services.

However, the fight was not over yet. In 2000, a bill passed the US house of representatives preventing phone companies from charging by the minute for internet access, but it excluded internet telephony services. This prompted the VON coalition to organize the ‘Internet Freedom Rally’ in Washington DC. In 2004, the FCC finally ruled on the ACTA petition with the “Pulver Order” allowing for cheap and free online phone calls to anywhere in the world.

The Legacy

The battle for fair communication and the fight against efforts to thwart new technologies is still relevant today. The story of the VON coalition’s fight against the ACTA petition and the FCC’s decision to allow internet phone calls is a reminder of the importance of fair competition and the need to protect new technologies from being stifled by incumbents.

The widespread use of cheap and free online phone calls, made possible by the VON coalition’s efforts, has had a significant impact on the way we communicate and do business today. Services like Facebook and Google are able to offer free voice and video calls globally, thanks to this technology.

Conclusion

In conclusion, the history of internet phone calls and the battle for fair communication is an important one, highlighting the key innovations, technical specifications and industry impact of this technology. It serves as a reminder of the importance of protecting new technologies and fighting for fair competition.

SOURCE: https://www.techdirt.com/2025/05/05/the-war-on-internet-phone-calls/