One of the more interesting aspects in VoIP History is the VoIP Phone. The first VoIP Phone was released in February of 1995. VocalTec released a VoIP Phone and called it the "Internet Phone". This original VoIP Phone was designed to run on an Intel 486 at 33 MHz or higher personal computer equipped with a sound card, speakers, microphone and a modem. The software compresses the voice signal, and then translates it into IP packets for transmission over the Internet. This VoIP Phone only worked if both parties were using VoIP Phone software. VocalTec's VoIP Phone, the Internet Phone, suffered from delays (due to congestion), disconnections and low quality (both due to congestion), disconnections and low quality (both due to lost and out of order packets) as well as incompatibility. VocalTec's Internet Phone was a significant breakthrough in the development of the VoIP Phone.
Many states believe that VoIP Providers should be required to pay a surcharge to support emergency services. In August 2003 Minnesota regulators took on one the largest VoIP Providers, Vonage. The regulators demanded that Vonage apply for a license as a telephone provider (not just be on the VoIP Providers), and pay fees to support emergency services in that state. This was the first attempt by a state to regulate VoIP Providers.
Another attempt against VoIP Providers was made by Wisconsin a month later. The Wisconsin Public Service Commission ordered all VoIP Providers to pay fees to support heat state's emergency services. These states believe that VoIP Providers are telecommunications services and should follow the same regulations as traditional PSTN service providers. VoIP Providers have a common misconception, that ISPs should not be subjected o PSTN regulations.
