Teleconferencing -- whether by audio alone or combined with video -- is now affordable for businesses of any
size, thanks to continuing advances in technology. In fact, for a few hundred dollars worth of equipment, a
company can hook up a system that lets managers talk to and see each other in remote locations. They can
be in different offices in the same building... or in several cities on different continents.
Today's teleconferencing and videoconferencing can arrange electronic meetings between people in remote
locations and employees on the company's in-house computer network. By electronic conferencing,
participants can...
Hold face-to-face discussions and display spreadsheets or graphics for all to see.
Look at -- and modify on the screen -- the design for a new product, a different financial projection or an
improved PowerPoint presentation.
Discuss television commercials or print ads as they appear on the computer screen.
Caution: Despite its wonderful advances, technology is moving ahead so fast today that it has also created
problems. Most serious:
Options for buying conferencing equipment are confusing. Unless you do extensive research, your company
could wind up with a needlessly expensive system.
While purchasing options may be confusing, the actual use of today's electronic conferencing technology is
simple. That can lead some managers to use it unnecessarily -- as a time-consuming substitute for a
simple phone call, fax or E-mail.
As with most other purchases, the more money spent on teleconferencing equipment, the higher the quality
of video and audio connection. So -- it's critical to weigh the cost factor against the company's actual
equipment needs. When managers within the company confer with each other, the quality of picture and
sound may not be critical. But when important outsiders -- sales prospects and bankers, for example -- are
invited to teleconference with company managers, there are good reasons to do it with high-quality
equipment.
LOW-END BARGAINS...
The least expensive way to teleconference is via the Internet, for which there is no per-minute time charge.
For that you simply need...
Access to the Internet via one of the thousands of Internet Service Providers (ISPs) -- usually at a flat fee of
less than $20 a month for unlimited use plus the cost of local phone calls.
Desktop or laptop computers at each teleconferencing site -- which most companies already have.
A full duplex sound card for each computer. Included in most new models, it will cost you about $200 as an
add-on.
A video camera that plugs into the computer. Cost: $300 to $500.
Software to run the system. This can be obtained free by downloading Microsoft's NetMeeting from the
Internet.
Installing a sound card may require the work of an employee with some amount of technical savvy -- not a lot
-- but the rest can usually be handled by a novice.
Drawback: The picture size is small and both audio and video transmitted via the Internet are slightly jerky
unless the company leases a high-speed data-transmission line. Some unsteadiness is usually acceptable,
if all a business needs to do is let several managers look at a visual presentation and discuss it among
themselves.
Budget-conscious companies that need to make extensive conference calls overseas can save substantially
by using the Internet -- as long as the quality of audio and video isn't a major concern. The quality of the
documents being shared is perfect, however.
A substantial amount of conferencing entails only conversation with no need for video. In that case, an
Internet hookup is especially attractive since there's no time charge. Phone companies, by contrast, charge
high rates to arrange long-distance conference calls, and the cost of international calls can be exorbitant.
If most of your teleconferencing is in the US, Internet hookups have less advantage, especially if video quality
is important.
Reason: Today's domestic phone rates are so low that long-distance charges may be minimal. That makes
conventional teleconferencing -- with top-quality audio and video -- quite inexpensive.
However, if Internet conferencing is your preference, its quality can be enhanced by using an ISDN
transmission line, which carries more data and therefore creates better sound and picture quality. Typical
cost: $200 a month.
An even better type of phone line, called a T1, improves quality still further. Typical cost: $2,500 a month.
Though comparatively expensive, these lines have other uses, including high-speed data transmission and
allowing many employees to browse the Internet simultaneously.
Expected later this year: Superfast transmission speeds that will make teleconferencing faster though not
necessarily cheaper, with TV-quality voice and video. Also -- new technology will soon permit several video
teleconferences to occur simultaneously.
MID- AND HIGH-LEVEL OPTIONS...
Today's desktop and laptop computers can be turned into teleconferencing systems with camera and
microphone equipment and software that cost $1,500 to $20,000, depending on the quality. With an ISDN or
T1 transmission line, the better systems deliver sounds and pictures as crisp as those on network television,
though sometimes slightly slower. Major vendors:
Connectix, 415-571-5100.
Corel, 613-788-6000.
Intel, 602-554-8080.
PictureTel, 800-716-6000.
Polycom, 408-526-9000.
VTEL, 800-299-8835.
At the high end, these PC teleconferencing systems can include big-screen video monitors -- often on
wheels so they can be easily moved -- and handheld devices that let participants themselves control the
cameras, even though they may be thousands of miles away.
Example: If you want a better view of a meeting participant, you can use the controller to zoom in.
Some systems show split-screen images on the monitors so that participants see themselves as well as
others in the conference.
Other vendors sell much less expensive equipment for businesses that need only audio teleconferencing.
Example: Latitude Communications, 800-999-7440.
Prediction: More PCs will come with cameras already installed.
Also at the high end of the scale are teleconferencing centers, although prices there are dropping. These
centers are leased by many hotel chains as well as some universities and research centers.
Example: Sheraton's PictureTel facilities rent for $125/hour for audio and $275/hour for audio and video plus
a $100 set-up charge at more than two dozen locations. Kinko's costs a lot less.
MORE EFFECTIVE USE
Since many managers are eager to test new technology -- often for its own sake -- caution your staff to use
only the level of teleconferencing that's actually needed.
Example: If conferencing is chiefly to discuss and simultaneously display financial data, all you may need is
an inexpensive Internet-based system that lets meeting participants view spreadsheets in black and white
while they hold an audio conference.
On the other hand, if marketing managers need to monitor focus groups around the country, it may make
sense to rent teleconferencing centers.
