Cisco to sell videoconferencing to smaller companies

San Francisco: Cisco Systems Inc, seeking to capitalise on companies' efforts to rein in travel expenses, introduced a videoconferencing system that is about one-third the cost of its original setup.

Cisco's TelePresence System 1300 Series, which will transmit life-size images of as many as six people, will cost $84,900 (Dh311,583). It will be available in June, the San Jose, California- based company said on Friday in a statement.

The biggest maker of networking equipment wants to attract a larger audience for its videoconferencing gear. When Cisco introduced the original $299,000 system in October 2006, CEO John Chambers said he expected $1 billion in annual sales within five to seven years. Chambers said two months ago sales will be "material" by next February.

The 1300 Series comes with a 65-inch plasma screen and a single device controlling three cameras. Unlike Cisco's original TelePresence system, which also transmits life-size images of six people, it doesn't require a dedicated conference room or include furniture, Cisco Vice President Charles Stucki said in an interview.

Cisco rose 46 cents to $16.77 on the Nasdaq Stock Market at 4pm New York time. The shares have gained 2.9 per cent this year.

TelePresence competes with Hewlett-Packard Co's Halo, another videoconferencing system that transmits life-size video. Both systems are intended to make users feel as if they're in the same room as the person they're calling.