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Video conferencing

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by Jan K. Allen

SBJ Contributing Writer

Revenues from the sale of video conferencing equipment have risen dramatically in the past two years, while the prices have dropped.

Doug Small, strategic account manager for Telec Inc., cites increased flexibility and decreased costs as the reasons for the surge in interest.

Earlier in this decade it was common for only the largest companies to own and use video conferencing equipment. Now mid-size to smaller companies can take advantage of the technology and save money compared to the costs associated with face-to-face meetings or presentations in another part of the country or overseas, Small said.

Usage was also previously restricted to areas where Integrated Services Digital Network, or ISDN, was installed. ISDN is the banding of telephone lines to produce a clearer image on the monitor. It is needed to produce quality transmission in video conferencing. Today with technological advances racing to the millennium, more areas have installed ISDN capabilities.

Until two years ago the video units could cost as much as $50,000 per end. Only about half a dozen companies in the world owned the equipment at that time, according to Small.

Then Sony and other major manufacturers began to mass produce the components for the service. This made the units available at a more affordable price, driving down the cost, but increasing the number of users to make the market soar.

Video conferencing is fast becoming a common tool for companies to communicate with their distant offices, sales representatives to reach their customers, distributors to pinpoint manufacturing changes and companies to link up internationally, Small said.

On a smaller scale, attorneys can take a deposition, a job candidate can interview, a doctor can consult with a patient or another physician, and teachers can conduct lectures in remote classrooms.

The cost of owning a conferencing system has dropped to less than $10,000 per end, said Brett Risner, a representative in the public relations department at Telec Inc.

The decrease has made the units affordable to many mid-sized and smaller businesses that previously could not afford the technology, Risner said.

Companies that can't justify the expense of owning a system or only need video conferencing on rare occasions can also rent space and equipment locally through Telec or at the Springfield Area Chamber of Commerce.

Public sites such as Telec or the chamber can link businesses or individuals worldwide. Through a linking service, the equipment providers connect sites, both domestic and international, where users can come together in two-way communication or with one-way seminars or lecture presentations.

Through the use of a document camera or a computer attached to the system, participants can use charts and illustrations or show maps, blueprints or sample products.

Small said video conferencing can save not only time and money, but the human toll of long-distance discussions as well.

The cost to the user is $150 per hour ($200 at the chamber for nonmembers). Additional long-distance charges may also apply when the connection is generated from this end.

In most cases the expense is less than airfares, motels and other related expenses to send a representative across country for a three-hour meeting. It also produces less stress on the individual, Small said.

The video conferencing setting is ideal for four or five participants, but can include as many as 60 or 70 people, said Todd Houge, information technology coordinator for the chamber.

"The system is most appropriate when you are trying to get a group of people together," Houge said.

He has also seen an increase in the number of individuals using the system, such as attorneys taking depositions.

"I've been surprised at the number of uses," Houge said.

The V-Tel system at the Chamber was purchased through and is serviced by Southwestern Bell.

Bell also provides PictureTel and PolyCom products, two other companies in the video conferencing arena. Telec, a provider of business phone systems, is an authorized Sony dealer for its systems.

As with Telec, Southwestern Bell does direct sales, installation and service of equipment, said Danny Matthews, senior systems engineer consultant for the company, and Southwestern Bell's contact person for video conferencing.

"More and more companies are looking at owning a system as a viable option," Matthews said.

More areas are upgrading to the ISDN capability necessary to produce a clear image, he said.

The chamber prefers a one-week notice to set up a conference, but can usually work on shorter notice, Houge said.

The camera can be preset to zoom in on the speaker or speakers at intervals or can be moved manually during the course of the meeting.

Telec can set up a conference on relatively short notice, depending on the availability of the room and how complicated the communication is in terms of the number and location of the sites included in the conference.

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Decreased cost and increased flexibility are two reasons video conferencing is gaining popularity.[[In-content Ad]]

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