Cisco slashes cost of video conferencing kit

New TelePresence technology almost a tenth of the cost of first-generation kit

Those predicting a fall in the cost of high-definition videoconferencing systems were vindicated this week after networking giant Cisco unveiled a new version of its TelePresence technology with a price almost 90 per cent below that of previous versions.

The new TelePresence 500 system aims to provide life-size videoconferencing for one user and can be fitted into an individual's office or even at their desk.

The system has a list price of $33,900 (£17,400), which may still appear steep but compares favourably to the original full-blown TelePresence suites which can cost more than $300,000 (£154,000).

"We have significantly lowered the entry-level cost and also provided more options for video meetings, allowing people to hold one-to-one meetings or join larger meetings from their office or even from home," said Tim Stone, senior marketing manager for unified communications at Cisco. He added that the new lower price should also make the technology accessible to a wider range of executives within multinational firms as well as some smaller businesses.

The system has a 37in plasma screen and embedded camera, which Cisco claims will enable life-size communication on a par with that provided by its conference room-based system.

It was launched on the same day that the company unveiled a new expanded version of the TelePresence suite, called TelePresence System 3200, which increases the maximum number of potential participants to 18.

Stone said the new versions had been developed in response to growing demand from customers for the technology, which advocates claim can deliver significant reductions in travel costs and carbon emissions while also bolstering workforce productivity.

"We are beginning to see some really interesting case studies which highlight the scale of the savings that can be realised," he said. "Internally we have had 214 TelePresence units deployed and we estimate that to date we have saved about 16,000 journeys at a cost of $141m (£72.5m)."

Stone also predicted that the cost of dedicated videoconferencing technologies will continue to fall rapidly. "I can see this eventually becoming a consumer product," he said. "As broadband gets faster and faster we can envisage the product reaching into the home and the domain of the SMB [small and medium business]."