A change of image for videoconferencing - The Carrier/Corporate Relationship

Telecommunications International, Sept, 2002 by Dale Bastian

Can videoconferencing finally deliver on its promise of cost-effective communication for businesses and significant new revenue streams for operators? If the vendor community is to be believed, the answer is a resounding yes.

There has been a significant increase in interest for video communications products for more than a year now and this has coincided with the economic downturn. Companies are looking for cost-efficient ways to conduct business, remain competitive and maintain customer, vendor and employee communications.

The tragic events of 11 September have also led to an even greater up-turn in inquiries, with companies investigating other options to travel. More business-users are now looking to expand and upgrade their video communications deployments, or, where they haven't got videoconferencing systems installed already, are actively looking to implement the technology.

The value of video communications

Video provides companies with the means to enhance communications while saving costs, increasing productivity and expediting decision-making. The quality of video calls today is nearly life-like, and the systems are easy-to-use and affordable enough to be deployed beyond the boardroom through to an organisation's conference rooms, offices and even into the homes of teleworkers.

Because video communications systems have become increasingly more affordable over the past few years, it's not uncommon for businesses to realise a payback on their video equipment investment from the cost savings of just a handful of business trips that no longer need to be made. This includes savings an airline tickets, hotel and rental car expenses, as well as the lost productivity from time spent travelling.

Ernst & Young, a global accounting firm,, estimates that it saves nearly US$300,000 ([euro]305,000) a month on travel expenses by using video communications systems. This geographically dispersed company uses video communications at more than 80 offices for applications such as distance training, real-time collaboration among work groups, face-to-face communication with vendors, and staff and sales meetings.

There's no question that for decades there have been obstacles that prevented the widespread adoption of video communications. Because of the sheer expense of the systems in the post, deployments were typically limited to executive boardrooms or large conference rooms. As recently as four years ago, video systems cost a minimum of US$25,000 ([euro]25,375) and upwards of US$250,000 ([euro]254,000) for custom video rooms. But, according to Telespan, an industry research firm, video communication system prices have decreased significantly over the past three years--the industry average for group systems now ranges from US$8,000 ([euro]8,120) to US$42,000 ([euro]42,600).

Video systems of a few years ago were also difficult to use with complex user interfaces that required technical support staff to set up calls. The quality of early systems was lacking as well with audio and video out of sync, and network delay making natural communications difficult. A lack of critical mass was also a factor that contributed to the slow growth of the video communications market. With only a limited number of systems deployed, there were few other systems to call. In addition, users of earlier video communication systems had to deal with disparate and limited network availability, and the high cost of a large network was sometimes difficult to justify.

Video communications today

There have been major strides forward over the last four years in terms of cost, quality and ease of use, which has put video communications on the map as a viable, mainstream communications tool.

System advancements

The higher performance and lower cost end-points have been essential to the deployment of video communications technology. At the moment, video end-points incorporate the most advanced audio and video algorithms, which enable TV-quality interaction. And in comparison to past video calls, video communications are now more than lust talking heads. Full data-sharing and collaboration are an integral part of videoconferencing. Participants can work together and edit documents in real-time, 3D-objects can be shown and intricate papers can be displayed on attached document cameras. In addition, any data from a PC -- static or live -- can be presented during a video call. With this level of interaction, information sharing and collaboration, meetings at a distance can be as productive as in person.

Both the usability and usefulness of video end-points have also increased in recent years, helping to promote more widespread deployment and more frequent use. Some of the most important ease of use enhancements centre on the graphical user interface. An intuitive, self-guided interface and a simple remote control can not only save frustration for the end-user but also minimise headaches for IT staff.

New systems now make dialing a video call as easy as a telephone call. They include graphical address books that enable easy dialing through online phone directories and also employ intelligent network systems, such as call processing servers. These network systems simplify calling to the point that end-users do not have to know the IP or ISDN number, the network type, or even the country code or dialing prefix of the party they wish to call.