Simple analog videoconferences could be established as early as the invention of the television. Such videoconferencing systems consisted of two closed-circuit television systems connected via cable. During the first manned space flights, NASA used two radiofrequency (UHF or VHF) links, one in each direction. TV channels routinely use this kind of videoconferencing when reporting from distant locations, for instance. Then mobile links to satellites using special trucks became rather common.

This technique was very expensive, though, and could not be used for more mundane applications, such as telemedicine, distance education, business meetings, and so on, particularly in long-distance applications. Attempts at using normal telephony networks to transmit slow-scan video, such as the first systems developed by AT&T, failed mostly due to the poor picture quality and the lack of efficient video compression techniques. It was only in the 1980s that digital telephony transmission networks became possible, such as ISDN, assuring a minimum bandwidth (usually 128 kilobits/sec) for compressed video and audio transmission. The first dedicated systems, such as those manufactured by pioneering VTC firms, like PictureTel, started to appear in the market as ISDN networks were expanding throughout the world. Video teleconference systems throughout the 1990's rapidly evolved from highly expensive proprietary equipment, software and network requirements to standards based technology that is readily available to the general public at a reasonable cost. Finally, in the 1990s, IP (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-SeeMe was developed at Cornell by Tim Dorcey et al. VTC arrived to the masses and free services and software, such as NetMeeting, MSN Messenger, Yahoo Messenger, and others brought cheap, albeit low-quality, VTC.

The core technology used in a videoteleconference (VTC) system is digital compression of audio and video streams in real time. The hardware or software that performs compression is called a codec (coder/decoder). Compression rates of up to 1:500 can be achieved. The resulting digital stream of 1's and 0's is subdivided into labelled packets, which are then transmitted through a digital network of some kind (usually ISDN or IP). The use of audio modems in the transmission line allow for the use of POTS, or the Plain Old Telephone System, in some low-speed applications, such as videotelephony, because they convert the digital pulses to/from analog waves in the audio spectrum range.

The other components required for a VTC system include:

Video input: video camera, webcam, or projector

Video output: computer monitor or television

Audio input: microphones

Audio output: usually loudspeakers associated with the display device or telephone

Data transfer: analog or digital telephone network, LAN or Internet

Dedicated systems have all required components packaged into a single piece of equipment, usually a console with a high quality remote controlled video camera. These cameras can be controlled at a distance to pan left and right, tilt up and down, and zoom. They became known as PTZ cameras. The console contains all electrical interfaces, the control computer, and the software or hardware-based codec. Omnidirectional microphones are connected to the console, as well as a TV monitor with loudspeakers and/or a video projector. There are several types of dedicated VTC devices:

Large group VTC are non-portable, large, more expensive devices used for large rooms and auditoriums.

Small group VTC are non-portable or portable, smaller, less expensive devices used for small meeting rooms.

Individual VTC are usually portable devices, meant for single users, have fixed cameras, microphones and loudspeakers integrated into the console.

Desktop systems are add-ons (hardware boards, usually) to normal PC's, transforming them into VTC devices. A range of different cameras and microphones can be used with the board, which contains the necessary codec and transmission interfaces. Most of the desktops systems work with the H.323 standard. Video conferences carried out via dispersed PCs are also known as e-meetings.