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Last Updated: 03. November 2017

The History of VoIP Phone Systems


VoIP: Communication Without Borders

You have probably heard about VoIP Phone, the new and exciting technology of business telephone systems that has taken the business world by storm. VoIP, which stands for Voice over Internet Protocol, is a technology that allows one to make telephone calls using the Internet (or private network) typically over a broadband connection instead of a standard phone line.

As access to the Internet has grown exponentially over the past years, traditional phone networks are now seen as old and limited solutions for businesses seeking growth and efficiency in communications. Instead, VoIP telephone systems are nowadays the hottest type of telephony in the marketplace.

Introductions aside, do you know how this revolution in communications started?

In case you are already familiar with a particular business telephone system you want, but still have some doubts about which supplier would best fit your company’s needs, just fill out the quote form on this page. Our experts from Market-Inspector will assist you with up to four quotes especially tailored to your preferences. This service is free of charge and obligations! Do not hesitate in case you need our help to make the right purchase.

How VoIP Changed the Game of Communications for Good

Acknowledged since the 90s as the ‘next big thing’ in the enterprise telecoms sector, VoIP phone systems are known as a fantastic tool for companies aiming at a better communication flow both internally and with their customers and suppliers.

Its attractiveness is due to many advantages:

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Expertvalet _logoCost saving
Expertvalet _logoMobility & flexibility
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Read more: Wireless VoIP Phone

The Golden Teenager of Communications & Its Way to Success

Everything started in 1995 in an Israel-based company called VocalTec with the two co-founders Alon Cohen and Lior Haramaty. Pioneers of VoIP, the first widely available Internet phone, the two had no idea that the invention of the new software would change communications worldwide for good.

At the time, it was baptised simply as Internet Phone, which possessed a fairly simple technology: one Internet user could call another, as long as both were using the same software. The call was possible through speakers and a microphone, but fancy features such as video were nonexistent.

A year later, Internet voicemail applications came to live. But it was not all roses. Poor sound quality and loss of connection came along. Despite a small user base, VoIP technology was growing in popularity and seemed very promising, since it allowed users to call abroad in a totally cost-free way.

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During this decade, the newly developed digital transmissions started to be a reality among telephone equipment manufacturers and telecommunications specialists. The speed, lower cost, and better quality of VoIP were striking the market. The addition of IP capabilities to switches and the development of a software allowing users to attach a VoIP adaptor to their phones was the last push before the intense growth in the popularity of VoIP.

With the advent of broadband Ethernet service, the quality of calls and connectivity improved considerably. From this point, it became possible to browse the Internet, play games and do other tasks online parallel to making voice calls. Furthermore, as interest in the Internet and web communication escalated, corporations began to have a glimpse of the increased communications expenses, which intensified further when the government began regulating VoIP communications in 2000.

In 2003, there was the birth of Skype, which rapidly gained attention worldwide. The possibility for making computer voice calls (later also possible in mobile devices and video chat) and using an instant messaging service was brilliant, allowing communication without borders. Also in this year, VoIP traffic rapidly expanded to 25% of voice calls, compared to 3% in the period prior to 2002 (source:

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What's Next?

Since Skype, many other substantial advancements have taken place in the market. With more robust broadband and wider connectivity, VoIP has clearly created a revolution in telephony and has become an integral part of the daily lives of many people throughout the world, opening doors for small companies to improve their operations. VoIP is one of the top-performing industries of this decade and is expected to be valued at £58,6 billion by 2017.

Thanks to Cohen & Haramaty’s pioneering spirit and forward thinking, business phone systems have now reached new heights powered by VoIP, and free long-distance calling is being enjoyed across the world by regular citizens and companies of all shapes and sizes.

VoIP is now one of the most talked-about technologies in the communications industry, and its future is bright. As good communication flow and efficiency in the workplace are top priorities for companies seeking to stand out from competition, VoIP phone systems are available to fulfil those needs.

Read more: VoIP Providers

We hope that you found this article useful and interesting and you now have a clear idea about what type of business telephone systems your company should acquire to improve your communication between customers and suppliers. Also, you can find out more about different types of office telephone systems for your business here.

In case you need further assistance about specific suppliers and prices, do not hesitate to fill out the form at the top of this page. Our sales team from Market-Inspector will contact you with a list of possible solutions to best fit your company. This service is nonbinding and totally free of charge!