The Evolution of Picturephone Service
Some recent milestones in the development of the
PICTUREPHONE® system are summarized pictorially on these pages
(photos from The Evolution of Picturephone Service,RECORD, October
1968).
1956 - By this time, Bell Labs scientists had developed several
experimental "video telephone" systems of varying size
and appearance which offered commercial possibilities. The one
shown here was demonstrated before the Institute of Radio
Engineers on August 23. This was the first system to transmit and
receive recognizable pictures over ordinary telephone wires.
1957 - Studies and experiments continued at Bell Labs to develop
an economically feasible videotelephone system. Experiments
similar to the one shown here helped engineers establish such
picture standards as resolution, contrast, and other features. By
1959, plans were made to develop a videotelephone system
specifically for the purpose of conducting trials.
1963 - A complete experimental Picturephone system had been
developed. The station set included the
camera-receiver-loudspeaker unit and the separate combination
telephone set-video control unit.
1964 - The first public exposure of Picturephone service was made
at the New York World's Fair. Visitors, selected at random, tried
the service for about 10 minutes each. Results of interviews
conducted at the conclusion of each trial provided valuable
information on early public reactions to the service.
1965 - As a result of earlier trials,
significant equipment and operational changes were made in the
Picturephone system. The modified equipment was used in a product
trial begun in July 1965, in cooperation with Union Carbide
Corporation. In December of the same year an experimental trial
began at AT&T headquarters in New York City. In June, 1967,
the trial was expanded to include three Bell Labs locations. This
trial integrated Picturephone service with normal telephone
service. This "corporate network" offered an opportunity
to explore additional uses for the system, such as the feasibility
of using the Picturephone set as an interface between man and
computer (shown here). The computer is interrogated from a
Touch-Tone® dial, and results are displayed on the screen. 1964
Limited commercial Picturephone service between public locations
in three cities-New York, Chicago, and Washington, D. C.-began on
June .25. The service was inaugurated with a call from Mrs.
Lyndon B. Johnson in Washington to Bell Laboratories scientist Dr.
Elizabeth A. Wood, at the Picturephone center in Grand Central
Terminal, New York. Robert F. Wagner, then mayor of New York, is
seated at right.
1968 - The Bell System's Picturephone "see-whileyou-
talk" set has been redesigned to incorporate additional
features as a result of the extensive trials. The improved
"Mod II" set shown here is itself now the subject of
further trials as the evolution of Picturephone service continues. |
the
COMMUNICATOR Vol.1·
No.1·1969
Discovery
through research / leadership through training of & for the
Deaf
___________________________________________________________________
Mr. and Mrs.
William Ennis and sons David (center) and John (right) of New York
City
visit via Picturephone with son Bill Jr., a student at Gallaudet
College, Washington, D.C.
Picturephone
demonstration provides exciting
"Experiment
in Communication"
In the lobby of
the Seventh Avenue skyscraper housing New York's. Picturephone
Center, the guard said-to no one in particular-"Something
must be up! Saturday mornings are usually dead around here!".
He scratched his head as, on that particular Saturday morning,
December 14, he watched excited knots of people heading for the
beautifully appointed American Telephone & Telegraph
Picturephone Center, located a few steps inside the building's
main entrance.
What the
lobby guard soon discovered was that for one hour and a half
that morning, AT&T had made available to the NYU Center for
Deafness Research its Picturephone equipment for what was billed
as an "Experiment in Communication". Similar groups of
deaf and hard of hearing persons were assembling at Picturephone
Centers in Washington, D. C. and Chicago in preparation for the
long-distance
communication demonstration.
Nearly 30
persons, most of them deaf and hard .of hearing, sat before the
Picturephone and communicated with friends and relatives in
Chicago and Washington during the experiment. Using sign language,
finger spelling, speech and lip reading, the participants made
plans for the Christmas holidays, inquired after each other's
health and, in one case, held a surprise birthday party. The
presence of photographers and reporters, including those from The
New York Times, added to the electricity of the occasion.
Dr. Edna Simon
Levine, Director of the N.Y.U. Center for Deafness Research,
stated, "The demonstration showed that, for the thousands of
deaf and hard of hearing persons in this country now cut oft from
the use of normal telephone equipment, a new dimension for
communications has
been achieved.
The Picturephone set, when it becomes available nationwide, can be
used by the deaf and hard of hearing to talk with their friends
and business associates throughout the country".
During the
"Experiment in Communication," specialists from the
N.Y.U. Center were present to evaluate the demonstration and
determine its usefulness in the area of deafness communication
research.
The event
was coordinated by Mr.
Bertram
Sund, a doctoral student in the Center's Audio-communicative
graduate program. Mr. Sund was previously a Program Coordinator
for ABC Television.
One of the
participants who saw and spoke with her deaf sister in Chicago
summed up the occasion for everyone by stating, "For the deaf
and hard of hearing, this phone is absolutely fantastic!" •
Scanned from the Harry G. Lang Collection
at SMECC |
Vistaphone brochure from h g lang collection at SMECC
May/June
1969 - The Second Picturephone... an issue
of Bell Labs Record devoted to it
|
Did I ever send you these pics I found...they were made about two years ago (possibly 2010). Since then, my Mom has passed away, and also the older lady "at the other end of the line" just a few months ago.
Alvin & Melba Browning of Florida were former church members at the church my Dad pastored in St. Louis where they had moved to from Mississippi to put their deaf son, Alvin Jr. in school there (not CID, but another deaf school...there were three schools for the deaf in St.L.) He's the third guy you see in pics, with white beard. Alvin and I are long-time friends, and we chatted occasionally on the VP between Florida and Rochester, NY.
This is the VP setup at my parent's house, in the upstairs apartment we used whenever we stayed there. I had set up an office there, consisting of my computer, the VP setup, and the OJO (partially seen in one photo).
My parents (Ed & Mildred Hewlett) are the ones whose backs of head you see...they came upstairs to talk with Alvin's parents after Alvin had called me, and said his parents were there at his house, so we arranged for the parents to chat.
Hope this is interesting for you.
Sal
PS You can see me in one of the pictures, standing in background, trying to take pictures! Need any other explanations, let me know. The VP has it's box sitting on top of that middle TV. The computer at left is what I worked at for emails, etc. etc. Huge screen, yes. I've since then given it to my brother. The OJO is partly seen, blocked by my father's head. He was 99 years old that time.
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Home
// Products
// Ojo
Video
Technical Specifications
Display Unit
General
Display
DC Input 12 V LCD
Monitor 7” diagonal
DC Current 1.5 A
(Typical)
Type LCD
Power Consumption 15 W
(Typical)
Resolution 234 x 480
AC Power Adapter 100 - 240 VAC,
50/60 Hz Backlighting Yes
Operating Temperature 10° to
40°C
Viewing Angle +/-30°(h) +/-60°(v)
Storage Temperature 0° to
70°C
Camera
Dimensions 15.5” x 9” x
8”
Image Sensor CMOS, ¼” color
Weight 2.5
lb.
Backlight Compensation Yes
Network
Automatic Gain Control Yes
Connector
RJ-45
White Balance Auto
Protocol
TCP/IP
Speakerphone
Ethernet Network Interface 100
Base-T
Audio Processing Full Duplex
Communications Standards SIP, TCP/IP, UDP, RTP
Echo Cancellation Adaptive Sub-band
Security SRTP, 128 bit AES
Audio Privacy Headset Jack
Call Bandwidth 150 Kbps
(Typical)
Video
80 - 350 Kbps
(Adjustable)
Resolution 176 x 144 (QCIF)
Audio
Frame Rate 30 fps (Fixed)
Compression (Video Calls) iLBC Compression H.264
Compression (Audio Calls) G.711 H.263 (Pending)
Regulatory
CE, CSA, CB, FCC Part 15, UL, C-UL, VCCI and C-tick (Pending)
Shadow (PVP-900)
Personal Video Phone
Redefining Video Telephony
WorldGate’s unique implementation of advanced
telephony, compression, and multimedia technologies
enables Ojo to produce pictures and sound that are true-to-life. The Ojo
experience surpasses previous video
telephony attempts by providing high-quality images and
precise audio-video synchronization without the break-up and distortion
normally associated with video
phones.
Quality
Ojo uses the latest video and audio codecs for superior
image quality and bandwidth efficiency.
The 15.5” tall display unit houses a high-resolution 16:9 LCD display,
a stateof- the-art miniature
camera, and advanced speakerphone technology that, combined, produce
an optimal personal video phone experience.
Breakthrough Design
Ojo is designed for the residential consumer and for
small and medium businesses. A user can
make IP video and VoIP voice-only calls using a household’s current
ten-digit telephone number.
Among Ojo’s many features are an easy-to-use graphical user interface,
picturebased caller ID, easily
accessible video privacy controls and video messaging. Ojo’s unique
industrial design is both stylish and
functional.
Broadband Friendly
Ojo is built for the broadband industry. The system
design leverages existing cable, DSL, and
fiber optic infrastructures.
Key Features
True-to-life video and audio quality
Video messaging
Picture-based caller ID and phonebook
Use of existing household telephone number
High-quality speakerphone with AGC and echo cancellation
CE certified for many international uses
Note - Looking for more info to add to this
section. If you were involved with the company
feel free to tell some history. Many thanks Ed Sharpe Archivist
for SMECC info@smecc.org
Note - Looking for more info to add to this
section. If you were involved with the company
feel free to tell some history. Many thanks Ed Sharpe Archivist
for SMECC info@smecc.org |
Life and Death of the Ojo Video Phone
Filed by Mari
Silbey under Industry,
Video,
VoIP
Feb 11
2008
Ah, the Ojo
Video Phone. Engadget
posted the rumor that the phone and service have now gone kaput.
And I can confirm it. After two plus years, the Ojo in my living room
has finally reached the end of its run.
Because I work for Motorola, I became the proud
owner of two Ojos back in late 2005. This was right before
Motorola gave up on the product and turned it back over to WorldGate,
its original manufacturer. I was the coveted demographic for the video
phone, a new parent and daughter of new grandparents, all with
broadband connections. And despite a few hiccups here and there, we
would have made a fantastic case study. Until last week, we used the
Ojos regularly. My two-year-old has literally grown up seeing her
grandparents on the phone every few days. Now it looks like we’ll
have to default to webcams, a sorry substitute.
So why didn’t the Ojo survive? There are many, many reasons.
- No interoperability. You could only talk to an Ojo from another
Ojo.
- An original retail price of $1,600 for a pair of Ojos, plus
a monthly fee. (Price came way down later on)
- Timing. As widespread as broadband is, there are still quite a
few grandparents without it or without the tech savvy to do more
with a broadband connection than check email. Maybe in five more
years.
- Routers. It was virtually impossible to make the Ojo compatible
with every router on the market, which means a lot of customers
could not get their Ojos to work at all without another new piece
of hardware.
- Wired connection. The Ojo only worked with an Ethernet line, and
while being tethered wasn’t a big deal (you could still move the
Ojo around for different perspectives), finding a place to put the
Ojo within Ethernet reach was. We ran an Ethernet cord up from our
basement, through a vent to our living room.
Some time soon I believe video will become an expected, add-on
feature for all of our phones. And then we’ll probably hook them
into our TVs for big-screen display. And then we’ll be able to
interact with the video, marking up our screens like any WebEx
presentation. And more, and more, and more. It’s all coming.
Just not for the Ojo.
Note - Looking for more info to add to this
section. If you were involved with the company
feel free to tell some history. Many thanks Ed Sharpe Archivist
for SMECC info@smecc.org |
|
iSight
From Wikipedia, the free encyclopedia ( with some
added photos!)
iSight
iSight logo |
Maker |
Apple
Inc. |
Type |
Motion picture camera |
Image sensor type |
Digital CCD |
Image sensor size |
1/4-inch; 640×480 resolution |
Recording medium |
Attached
to computer via FireWire |
Lens |
Glass, internal auto-focus lens system |
Focus |
Automatic (50 mm – ∞) |
Shutter
speeds |
Continuous up to 30 frame/s |
F-numbers |
2.8 |
iSight
is a webcam,
both external and internal, developed and marketed by Apple
Inc. The external iSight was sold retail for US$149, connected to
a computer via a FireWire
cable, and came with a set of mounts to place it atop any then-current
Apple display, laptop computer, all-in-one desktop computer, or flat
surface.
Apple
introduced iSight at the 2003 Worldwide
Developers Conference, intended to be used with iChat
AV, Apple's video-conferencing client. iMovie
(version 4 and later) could also be used to capture video from the
device. In April 2005, Apple released a firmware
update for the iSight to improve audio
performance. As of December 16, 2006, the external iSight was no
longer for sale in the Apple online store or in retail locations.
Meanwhile,
Apple began using the term to refer to the camera built into Apple's iMac,
MacBook,
MacBook
Air, and MacBook
Pro computers, and Cinema
Display. In November 2010, Apple began transitioning to calling
them "FaceTime
cameras". However, the term was not retired, as the
third-generation iPad,
the fifth-generation iPod
touch, the iPhone
5, the iPhone
4S, and the iPhone
4 all incorporate "iSight" rear cameras in addition to
their front-facing VGA "FaceTime" cameras.
Design
The external
iSight's ¼-inch color CCD
sensor has 640×480-pixel VGA
resolution, with a custom-designed three-part F/2.8
lens
with two aspherical elements. It features autoexposure, autofocusing
from 50 mm to infinity, and video capture at 30 frames per second
in 24-bit color with a variety of shutter speeds. However, the iSight
has an image delay of approximately 120 ms.[citation
needed].
The iSight
incorporates internal microphones
with dual-element noise
suppression. The actual camera only takes up one-quarter of the
unit; the remaining space is primarily occupied by its two microphones
and mounting socket.
The iSight camera weighs 2.3 ounces (63.8 grams). It uses
a single FireWire 400 (IEEE 1394a) cable (included) for audio, video,
and power.
Four camera
mounts, a plastic tube carrying case, and a FireWire camera mount
adapter are also included. The user can select the mounting bracket
most appropriate for their monitor or other mounting surface. It is
fully compatible with its native
Mac
OS X, as well as partially compatible with the Microsoft
Windows and Linux
operating systems.
The iSight has
a small green LED
that illuminates when the camera is in use. It also has an iris that
closes by twisting the front of the camera.
Built-in iSight
A built-in iSight on a White MacBook.
Although
external and internal iSights have significant differences, Apple has
used the "iSight" name to brand its built-in video camera
found in their MacBook,
MacBook
Air and MacBook
Pro notebook computers, iMac
desktop computers produced since late 2005 and the LED
Cinema
Display. While the external iSight is similar to the built-in
iSight, the built-in iSight uses an internal USB
2.0 interface and not the FireWire 400 (IEEE 1394a) interface used by
the external iSight camera.[1]
Further, the built-in iSight has a plastic lens, is fixed-focus, and
uses a CMOS active
pixel sensor, rather than the CCD
used in the external iSight. With the LED-Backlit MacBook Pros, Apple
has moved to using a sensor capable of 1280x1024 pixels. The built-in
iSight can also be used in the Photo
Booth application. The FaceTime cameras included with the 2011
versions of the MacBook Pro and iMac can output high
definition video.
|
List of video
telecommunication services and product brands
From Wikipedia, the free encyclopedia
This list of video telecommunication services and product brands
is for groupings of video telecommunication services and for
manufacturers' brands of videophones, webcams and video conferencing
hardware and systems, all related to videotelephony
for two-way communications with live video and audio.
Descriptive names and terminology
Videophone calls (also: videocalls and video chat),[1]
differ from videoconferencing
in that they expect to serve individuals, not groups.[2]
However that distinction has become increasingly blurred with
technology improvements such as increased
bandwidth and sophisticated software
clients that can allow for multiple parties on a call. In general
everyday usage the term videoconferencing is now frequently
used instead of videocall for point-to-point calls between two
units. Both videophone calls and videoconferencing are also now
commonly referred to as a video link.
Webcams
are popular, relatively low cost devices which can provide live video
and audio streams via personal computers, and can be used with many software
clients for both video calls and videoconferencing.[3]
A videoconference
system is generally higher cost than a videophone and deploys
greater capabilities. A videoconference (also known as a videoteleconference)
allows two or more locations to communicate via live, simultaneous
two-way video and audio transmissions. This is often accomplished by
the use of a multipoint
control unit (a centralized distribution and call management
system) or by a similar non-centralized multipoint capability embedded
in each videoconferencing unit. Again, technology improvements have
circumvented traditional definitions by allowing multiple party
videoconferencing via web-based applications.[4][5]
A separate webpage article is devoted to videoconferencing.
A telepresence
system is a high-end videoconferencing system and service
usually employed by enterprise-level
corporate offices. Telepresence conference rooms use state-of-the art
room designs, video cameras, displays, sound-systems and processors,
coupled with high-to-very-high capacity bandwidth transmissions.
Typical uses of the various technologies described above include
videocalling or videoconferencing on a one-to-one, one-to-many or
many-to-many basis for personal, business, educational, deaf
Video Relay Service and tele-medical,
diagnostic and rehabilitative
use or services. New services utilizing videocalling and
videoconferencing, such as teachers and psychologists conducting
online sessions,[6]
personal videocalls to inmates
incarcerated in penitentiaries, and videoconferencing to resolve airline
engineering issues at maintenance
facilities, are being created or evolving on an on-going basis.
The products below are listed by their normal and intended
purpose, even though their names or descriptions may differ from the
categories shown here (refer to terminology within general article
pages).
Hardware
and related product brands
Worldgate Ojo PVP-900 broadband
videophone from 2005, notable for its vertical styling and
the cordless handset resting on the support arm for its
'portrait' type display.
- Videophone
hardware brands for person-to-person (point-to-point) use
Stand-alone videophones are point-to-point units not
employing Multipoint
Control Units (centralized distribution and call management
systems). Earlier models make video calls utilizing older analogue
POTS
telephone lines, while later models use newer, higher quality, ADSL,
ISDN
or cable broadband technologies. Some videophones also employ Internet
calling (IP)
capabilities which can dispense with the need for telephone service.
- ACN:
IRIS (United States)
- D-Link:
DVC series (Taiwan)
- HP:
Halo Telepresence Solutions (United States)
- Leadtek:
IP broadband videophone (Taiwan)
- LifeSize:
LifeSize Passport Connect, LifeSize Passport & LifeSize
Express (United States)
- LG-Nortel:
LVP series PSTN, ISDN and IP videophones (South Korea)
- Polycom:
VVX1500 and VVX500 Business media phones (United States)
- Radvision:
Video Conference Systems (Israel)
- Tandberg:
E20
(Norway)
- Telio:
Telio videotelefon IP3870 (Norway)
- Worldgate:
Ojo PVP series (United States)
- Videoconferencing
and telepresence hardware systems meant for multiple participants
A Teliris VirtualLife high resolution
telepresence system in use (Courtesy of: Teliris)
Note - Looking for more info to
add to this section. If you were involved with the company feel
free to tell some history. Many thanks Ed Sharpe Archivist
for SMECC info@smecc.org
Applying telepresence to education: a
professional development expert in Colorado,
U.S. uses telepresence to coach a teacher in Utah during
research for Project thereNow
Video conferencing systems allow multiple
participants by use of a Multipoint
Control Unit (a centralized distribution and call management
system) or via a similar non-centralized multipoint capability
technology embedded in each unit. Some multiple party systems utilize
Web-based bridging service providers, which can incur slight
time delays.
- Aethra:
X-Line series (Italy)
- AVer: HVC330, H300 (Taiwan)
- BrightCom: Lumina Telepresence (United
States)
- Cisco
Systems: Cisco
TelePresence (United States)
- HP:
Halo (United States)
- IOCOM:
Visimeet (United States)
- LG-Nortel:
LVP series PSTN, ISDN and IP videophones (South Korea)
- Librestream:
Onsight (Canada)
- LifeSize:
LifeSize Team, LifeSize Room & LifeSize Conference
(United States)
- Magor: HD-Duo, HD-Trio (Canada)
- Panasonic:
VC500 (Japan)
- Polycom:
RPX, OTX, ATX, HDX, VSX series (United States)
- Polycom:
VVX (United States)
- Radvision:
Scopia systems (Israel)
- Sony:
PCS systems (Japan)
- Tandberg:
T3 Telepresence (Norway)
- VeaMea: VeaMea Streaming Server & VeaMeaUC
(United States)
- Vidyo:
VidyoRoom & VidyoDesktop (United States)
- Videoconferencing
hardware systems meant for the deaf, hard-of-hearing, telemedical and
other institutional services
- IOCOM:
Visimeet (United States)
- IVèS: Total conversation solution (video, voice
and real-time
text) for Video Relay Services (VRS), Video Remote
Interpreting (VRI), Text Relay and telemedecine.
- Librestream:
Onsight (Canada)
- Mirial
s.u.r.l.: PSE Video Contact Center, comprehensive solution for
remote audio and video contact services
- Polycom:
Practitioner Cart, HDX Immersive Telemedicine Education systems
- VeaMea (United States)
- Videoconference
bridging service providers
- Webcam
hardware brands for use on personal computers
A pre-2006 Apple iSight webcam, with software
drivers written specifically for Apple's operating systems
- Software
clients –general brands
- Software
clients –free instant messaging video programs
- Software
clients for deaf and hard-of-hearing VRS/VRI facilities
- Server
Software
- Section
2: Video telecommunication services listing
- Video
telecommunication services for the deaf and hard-of-hearing
- See also: Video
Relay Service –Worldwide deployment for tables of VRS
service providers in Brazil, Denmark, Finland, France, Germany,
Italy, Russia, Spain, United Kingdom, United States and other
countries.
- Medical
organizations employing video telecommunications
- Public
videoconferencing facilities
- ACT Proximity Conferencing: Conference rooms with
videoconferencing.
- Eye Network Global Videoconference Services:
Video Conferencing facilities.
- FedEx
Office: formerly FedEx-Kinko's. Conference rooms with
video conferencing.
- Marriott
Hotels: conference rooms with video conferencing.
- Regus Offices: conference rooms with video
conferencing.
- WHYGO Video Conferencing: Video Conferencing
Facilities.
- Section
3: Defunct brands & services
Brands, manufacturers and other services listed
here are no longer in production or no longer exist, and are listed
for historical or research purposes.
- Defunct
videophone brands
- Defunct
videoconferencing system brands
- IBM
Person to Person, a software-only collaborative
conferencing system interoperable between OS/2, Windows and AIX
developed and marketed between 1991 and 1995.[7]
- See
also
- References
- ^
PC Magazine. Definition:
Video Calling, PC Magazine website. Retrieved 19 August
2010,
- ^
Mulbach, 1995. Pg. 291.
- ^
Solomon Negash, Michael E. Whitman.
Editors: Solomon Negash, Michael E. Whitman, Amy B. Woszczynski,
Ken Hoganson, Herbert Mattord. Handbook
of Distance Learning for Real-Time and Asynchronous Information
Technology Education, Idea Group Inc (IGI), 2008, pg. 17, ISBN
1-59904-964-3, ISBN
978-1-59904-964-9. Note costing: "....students had the
option to install a webcam on their end (a basic webcam costs
about $40.00) to view the class in session."
- ^
Lawson, Stephen. Vidyo
Packages Conferencing For Campuses, IDG News Service,
February 16, 2010. Retrieved via Computerworld.com's website,
February 18, 2010
- ^
Jackman, Elizabeth. New
Video Conferencing System Streamlines Firefighter Training,
Peoria Times, Peoria, AZ, February 19, 2010. Retrieved February
19, 2010;
- ^
USA Today. "Video Chat
Growing by Light-Year Leaps", USA
Today, March 31, 2010, p. L01d.
- ^
Straits
Times newspaper clip about P2P from 1993
- Further
reading
- Bajaj, Vikas. Transparent
Government, Via Webcams in India, The
New York Times, July 18, 2011, pg.B3. Published online: July
17, 2011.
- Davis, Andrew W.; Weinstein, Ira M. The
Business Case for Videoconferencing, Wainhouse Research,
March 2005.
- Hoffman, Jan. When
Your Therapist Is Only a Click Away, The
New York Times, September 25, 2011, pg. ST1. Also published
September 23, 2011 online at www.nytimes.com.
- ProAV Magazine. Being
There ProAV Magazine. 7 November 2008.
- Saint Louis, Catherine. With
Enough Bandwidth, Many Join The Band, The
New York Times, January 10, 2012 (online), January 11, 2012
(in print, New York Edition, pg. A1). Retrieved online January 11,
2012. Synopsis: a look at the pros and cons of videotelephony used
for private, individual, music lessons.
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PictureTel Corp. History
(Historical data)
Address:
100 Minuteman Road
Andover, Massachusetts 01810
U.S.A.
Telephone: (978) 292-5000
Toll Free: 800-716-6000
Fax: (978) 292-3300
Website: www.picturetel.com
Public Company
Incorporated: 1984 as
PicTel Corp.
Employees:
1,544
Sales: $466.4 million
Stock Exchanges:
NASDAQ
Ticker Symbol:
PCTL
SICs: 3669 Communications Equipment, Not Elsewhere
Classified; 7372 Prepackaged Software
Company Perspectives:
The Mission of PictureTel is to be the worldwide leader in providing
high-quality visual collaboration solutions that enable our customers to
meet and work effectively and productively at a distance--anywhere,
anytime.
Company History:
PictureTel Corp. is the world's leading manufacturer of video
communications systems for use over conventional or high-speed telephone
lines. The company offers several
systems, including relatively inexpensive models that provide audio/visual
surveillance, more complex models that enable personal computer (PC) users
to view each other on their computer screens, and complex multipoint
systems that allow people in several locations to communicate at once.
Origins
The concept of video communications emerged during the 1960s, when
American Telephone and Telegraph Company (AT&T)
developed a telephone capable of sending a series of snapshots simulating
motion over its lines, which were then displayed on an accompanying video
screen. The device originally was intended for use in residential markets,
but when market research indicated that users were uncomfortable with the
idea of being seen during telephone conversations, plans to continue with
the development of the "picture telephone" were stalled.
Video communications would later have more practical applications in
the business community, which welcomed less costly and time-consuming
alternatives to the travel involved in corporate meetings. In the 1970s
AT&T again tried to exploit its video network by establishing studios
in major cities, where video communications were made available to
businesses for a rental fee. The costs involved in operating the system,
reflected in the rental fees, proved exorbitant, however, discouraging
demand for the service. Opportunities for companies other than AT&T to
develop and manufacture video communications systems were limited during
this time, as the Federal Communications Commission (FCC) imposed
regulations and specifications for
equipment that interconnected with the public telephone network. In 1984,
however, with the divestiture of AT&T, barriers to entry in the
telephone equipment market came down.
Improvements in video
communications were also contingent on modifications to the country's
telephone network system. Designed only for voice communication,
conventional telephone lines had an extremely limited bandwidth that
provided only a narrow frequency range; for proper transmission, video
images required enormous bandwidths. The development of digital
electronics technology helped overcome this problem. Digital electronics
created more data transmission space by using algorithms to replace
repetitive or superfluous signals with simpler, shorter codes,
a process known as data compression.
Two experts in this technology were Brian L. Hinman and Jeffrey G.
Bernstein, long-time friends and colleagues in the electrical engineering
graduate studies program at the Massachusetts Institute of Technology
during the 1970s. At MIT, Hinman and Bernstein focused on the science of
image processing through visual data compression, gaining valuable
technological guidance from their faculty advisor, Dr. David Staelin. The
three conceived of a plan to develop and market a line of video
communication devices based on a 56-kilobit per second translating
interface, or "codec," they had assembled. This system would
allow images to be sent over telephone wires.
Hinman, Bernstein, and Staelin gained financial backing from Robert
Sterling, an entrepreneur specializing in high-technology ventures, and
the PicTel Corporation was formed on August 13, 1984. PicTel established a
corporate office and laboratory in Peabody, Massachusetts, where work
commenced on software and hardware for the 56-kilobit per second codec.
The company drew its management
team from some of the country's most prominent corporations. Robert
Bernardi and Dr. Norman Gaut were recruited from companies in
Massachusetts' high-tech industrial corridor. Dr. Ronald Posner, former
head of the Harris Corporation's satellite division, became president and
CEO, and Thomas Spaulding, formerly of Multilink, Inc., became chief
financial officer.
Before it had even developed a product, the company went public on
November 8, 1984, selling 2.2 million shares at $2 per share. On December
4, the company's underwriter, S.D. Cohn & Company, purchased 330,000
shares, reflecting growing confidence in PicTel's project. Product
development continued through 1985 without a single sale. Early in 1986,
however, PicTel developed its MCT algorithm, which reduced the bandwidth
necessary for transmission of an acceptable video image from 768 kilobits
per second to just 224.
Further Technological Developments in the Late 1980s
In July the company introduced its first product based on the MCT
algorithm, a software-based codec called C-2000. Although the device's
applications were limited, few other companies were as far along with this
technology as PicTel, and work continued on improvements in the product
through 1987. During this time, the company changed its name to PictureTel
to better reflect its focus on picture transmission and to distinguish its
name from the technical term "pixel," which referred to the
picture elements in a video image.
In 1988 PictureTel developed a new
image coding system, called hierarchical vector quantizing, which
required a bandwidth of only 112 kilobits per second, a rapid rate made
possible by the system's ability to weed out redundant image
transmissions, or those that reflected little or no movement. The company
also introduced two new products that year: the C-3000 video codec and the
V-2100 videoconferencing system. The C-3000 was compatible with the C-2000
and performed as well as any competing system on the market, at half the
price and half the size. The V-2100 system was enclosed in a wheeled
cabinet that enabled users to set up a video conference from any room that
was properly wired.
In January 1989, AT&T chose PictureTel as the equipment vendor for
an international video conference it held. The demonstration provided
two-way, full-motion voice and video connection between PictureTel
headquarters and an AT&T office in Paris. Other PictureTel
demonstrations followed, including one for its remote-control V-3100
videoconferencing system and another that featured the Px64, which allowed
PictureTel systems to be connected to those developed by other
manufacturers. By the close of 1989, PictureTel had shipped more than 70
percent of the videoconference systems in use throughout the world. While
the company's revenues tripled between 1987 and 1988, to $18.6 million,
PictureTel had yet to turn a profit.
Several other product extensions were introduced in 1990, incorporating
larger monitors and more rugged construction. PictureTel developed a
one-way transmission system for surveillance use, enabling security groups
to monitor remote locations through inexpensive, simple telephone
connections. The company's Software Generation 3 system provided better
picture quality and seven kilohertz of audio bandwidth at the same
112-kilobit per second switched data rate. By marketing entire video
systems, rather than just the codec devices, PictureTel reaped a larger
margin on each system sale. Shipments of videoconferencing systems
increased by 40 percent over 1989, to 770 units. Revenues increased a
further 99 percent over the previous year, to $37 million.
In January 1991, PictureTel introduced a new family of
videoconferencing systems under the System 4000 name. The line included
four models, ranging from small consoles to large conference room devices.
System 4000 included a proprietary audio technology called Integrated
Dynamic Echo Cancellation (IDEC), which helped prevent feedback that could
produce annoying echoes. The System 4000 became PictureTel's flagship
product line. At two-thirds the cost of competing systems, it also had
considerable demand.
PictureTel's primary customer base consisted of large corporations with
offices in multiple locations. These customers laid out in excess of
$20,000 for each system and also paid for the special switched data links
necessary to form a network. Although a substantial investment, the
PictureTel videoconferencing system could pay for itself in as little as a
year. Executives who formerly convened in person, incurring substantial
airline and hotel costs, could now meet in the comfort and convenience of
their own offices.
1991: Partnership with North Supply
By 1991, however, PictureTel had nearly exhausted its market among the
large Fortune 500 companies that could afford such a system, and the
company began making efforts to boost sales of videoconferencing equipment
to smaller companies. Key to this effort was a marketing partnership with
North Supply. Under the terms of the agreement, PictureTel products were
sold through North Supply dealerships. The company soon introduced a new
low-cost product line, which could be used by companies of modest means or
added to enhance existing networks.
In April 1991, with investor enthusiasm in the company running high,
PictureTel issued another 2.3 million shares, raising more than $40
million in equity capital. In September, PictureTel introduced its M-8000
multipoint bridge, a device that enabled users to conduct as many as eight
simultaneous videoconferences among 16 users.
Although PictureTel led the industry in videoconferencing technologies,
it remained a small company with limited marketing resources. To increase
its capital, PictureTel established a joint marketing agreement with IBM,
which welcomed the opportunity to leverage PictureTel's products into its
own flagging line of computer products. As an IBM "multimedia
business partner," PictureTel provided full-motion color video
technologies that enhanced IBM's personal computers, allowing
videoconferences to be conducted from individual work stations. PictureTel
ended the year with record earnings, due primarily to the success of the
System 4000 product line. Reporting a profit for each quarter, the
company's revenues grew to $78 million and net income reached $6 million.
PictureTel sealed another series of important joint marketing
agreements in January 1992. In one agreement, AT&T agreed to handle
sales and service of an AT&T videoconferencing product based on
PictureTel technology. A separate arrangement was established under which
Bell Atlantic's seven telephone companies would directly handle sales and
service of PictureTel products. The company also established a Japanese
subsidiary to handle sales of videoconferencing products in Japan. A month
later, the company finalized similar agreements with Mercury
Communications in the United Kingdom, as well as with the U.S.
telecommunications corporation Sprint. PictureTel videoconferencing
technologies also were marketed as part of the Lotus Notes software
application.
Total revenue for 1992 exceeded $141 million, net income grew to $10.7
million, and shipments numbered more than 2,850 units, marking a second
year of profitable operation for PictureTel. With such success in the
marketplace, however, PictureTel showed signs of vulnerability to price
competition from such rivals as Vtel Corporation and Compression Labs. To
prevent losses, PictureTel reduced prices on its System 4000 family by 20
percent and introduced an entry level product called the Model 150E.
Priced at $18,500, the system could be leased for only $500 per month,
making videoconferencing affordable for even the smallest and lowest
margin businesses. Other low-cost videoconferencing products included the
new PictureTel LIVE, PCS 100 desktop, and System 1000 lines, all of which
were compatible with international standards and, therefore, operable with
any standard-based system.
In an effort to enhance its existing product line, PictureTel acquired
KA Teletech, a Baltimore-based developer of scheduling, reservation,
accounting, and network management software for the videoconferencing
industry. The enterprise was relocated subsequently to PictureTel
headquarters in Danvers, Massachusetts.
During this time, PictureTel launched its first national advertising
campaign, featuring such taglines as: "Over 70 percent of dial-up
videoconferences are PictureTel. Get the Picture?"; "This isn't
an ad for videoconferencing. It's a wake-up call"; and "We don't
move people, we move ideas. And ideas are what move companies."
1993: PC-Based Videoconferencing
At the close of 1993, PictureTel unveiled a new product that converted
PCs into videophones. Regarded as substantially higher in quality than a
competing system from AT&T, the PictureTel product sold for $6,000, or
$1,000 more than the AT&T model. The year 1993 also saw the company
ship its 10,000th group videoconferencing system. PictureTel was ranked
the 11th fastest growing company in the United States by Fortune
magazine, up from 14th on the list the year before.
In 1994 the company continued to add new products and cut prices. It
slashed the price of its PC-based desktop videoconferencing system almost
in half to compete with Intel's ProShare line. PictureTel expected to come
out on top in sales, as its system offered noticeably better picture
quality. The company also announced new strategic alliances with a number
of major corporations, including Compaq. Sales for the year were $255
million.
PictureTel reached several milestones in 1995, including conducting, in
April, the world's largest multipoint, global dial-up videoconference.
Conducted from New York's Hudson Theater, more than 50 sites dialed in for
the hour-long demonstration. The company used the opportunity to unveil
two new group videoconferencing systems and a new network server. The cost
of renting phone lines for the event was $4,400, as compared with $160,000
for satellite linkup costs that other types of systems would have
required. PictureTel's stock price was fluctuating wildly during this
time, reaching $45 in April and $73 in November, with several ups and
downs along the way. The company announced plans to move its headquarters
from Danvers to Andover, Massachusetts, consolidating most of its
operations under one roof.
Sales Slump in the Late 1990s
Competition from a number of different companies, particularly Intel,
were eroding PictureTel's profits, however, as the company was forced to
continually lower prices to compete. With 15 to 20 percent of the
company's revenues now coming from its desktop systems, PictureTel's stock
began to slip, even as the company posted record revenues and profits for
1996, as investors became wary of "Intel overhang." In 1997 the
company began to see sales and earnings drop, and it went through a
restructuring to eliminate unprofitable operations. The company reported
earnings of $466 million with a net loss of $39 million. To compound this
bad news, figures for 1996 had required downward revision, as significant
errors in the accounting of sales and lease payments were discovered. A
number of shareholder lawsuits resulted.
Despite these problems, PictureTel announced the acquisition of
Andover-based audioconferencing pioneer MultiLink, Inc., as well as an
expansion of the company's Japanese partnership with Nippon Telegraph and
Telephone Corp. The company still held a majority of the global market in
both the large "boardroom size" and smaller desktop
videoconferencing systems.
Sales were still down in early 1998, and PictureTel announced layoffs
in January. The company's stock was now trading at less than $10 a share.
PictureTel had seen a number of top executives depart in the previous
year, and in March CEO Norman Gaut left, to be replaced by Bruce Bond.
Bond began immediately to take measures to right the ship. In July the
company announced the acquisition of Starlight Networks, Inc., a streaming
media technology company. Streaming media systems were used to send audio
and video feeds over the Internet to multiple recipients. PictureTel was
moving toward more Internet-based products, including
"on-demand" services, which offered recorded programs that could
be accessed from a central server when needed.
In January of 1999, PictureTel announced a major deal with Intel, in
which the company would collaborate with its rival to jointly develop and
distribute products. The chip maker invested $30.5 million in PictureTel,
making it a ten percent owner of the company. In making this deal
PictureTel was finally getting a leg up to the stability and growth that
it had been seeking. It was still likely to remain a bumpy road because of
the rapidly changing technology and competitive marketplace, but the
combination of PictureTel's inherent strengths and the clout of industry
giant Intel was a potent one. As the new century dawned, PictureTel
appeared to be in its strongest position to date.
Principal Subsidiaries: Multilink, Inc.; Picturetel
Securities Corp.; PictureTel AG (Switzerland); PictureTel Japan K.K.
(Japan); PictureTel GmbH (Germany); PictureTel UK Ltd. (United Kingdom).
Further Reading:
- Ackerman, Jerry, "President Is Leaving PictureTel,"
Boston Globe, October 1, 1997, p. D1.
- Bulkeley, William M., "PictureTel To Introduce $6,000 System to
Make PCs Work as Video Telephones," Wall Street Journal,
July 16, 1993, p. B8.
- Clark, Tim, "PictureTel Sharpens Brand Image,"
Business Marketing, June 1993, p. 33.
- Higgins, Steve, "Leaders & Success: PictureTel's Norman
Gaut--Trying To Minimize Whatever Is Extraneous to Success,"
Investor's Business Daily, May 16, 1995, p. A1.
- McCloy, Andrew P., "PictureTel, Intel Fight for Home Video
Market," Boston Business Journal, June 28, 1996, p. 3.
- Nutile, Tom, "On State Street: PictureTel's Stock Rockets to
$72.50 a Share," Boston Herald, November 9, 1995, p. 49.
- "PictureTel, AT&T Vie for Videoconferencing Growth,"
Electronic News, May 17, 1993, p. 15.
- "PictureTel Shrinks Size and Price of Video-Conferencing
Suite," PC Week, July 20, 1993.
- Purdy, Janet, "The New America: PictureTel
Corp.--Videoconferencing Firm Back to Full Color," Investor's
Business Daily, July 14, 1995, p. A4.
- "Videoconferencing: Going Prime Time?," PC Week,
May 25, 1998, p. 124.
Source: International Directory of Company
Histories, Vol. 27. St. James Press, 1999.
Note - Looking for more info to add to this
section. If you were involved with the company
feel free to tell some history. Many thanks Ed Sharpe Archivist
for SMECC info@smecc.org |
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