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The development of the crucial video technology first started in the latter half of the 1920s in the United Kingdom and the United States, spurred notably by John Logie Baird and AT&T's Bell Labs.This occurred in part, at least with AT&T, to serve as an adjunct supplementing the use of the telephone.A number of organizations believed that videotelephony would be superior to plain voice communications.However video technology was to be deployed in analog television broadcasting long before it could become practical—or popular—for videophones.

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The development of advanced video codecs, more powerful CPUs, and high-bandwidth Internet telecommunication services in the late 1990s allowed videophones to provide high quality low-cost colour service between users almost anyplace in the world that the Internet is available.Finally, in the 1990s, Internet Protocol-based videoconferencing became possible, and more efficient video compression technologies were developed, permitting desktop, or personal computer (PC)-based videoconferencing.In 1992 CU-See Me was developed at Cornell by Tim Dorcey et al.Attempts at using normal telephony networks to transmit slow-scan video, such as the first systems developed by AT&T Corporation, first researched in the 1950s, failed mostly due to the poor picture quality and the lack of efficient video compression techniques.The greater 1 MHz bandwidth and 6 Mbit/s bit rate of the AT&T Picturephone in the 1970s also did not achieve commercial success, mostly due to its high cost, but also due to a lack of network effect — with only a few hundred Picturephones in the world, users had extremely few contacts they could actually call to, and interoperability with other videophone systems would not exist for decades.

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