VIDEO conferencing has so far failed to fully capture the business imagination because of problems installing cost effective systems, but now two Manchester-based companies are hoping to change that.

As a way of effective communication, video conferencing has been limited to academia and large corporations who can justify a significant outlay in technology and IT support. But Salford's NetServices and Altrincham's Videonations have created a partnership to bring down costs.

Videonations has been providing intergrated videoconferencing solutions, and has recently experienced a growing demand for solutions that deliver services using internet protocols.

NetServices' technology allows high quality voice, video and data services in real-time, and the companies have formed what they hope will be a productive partnership.

NetServices' chief executive Mark Vickers said: "For years the channel has struggled in selling videoconferencing over IP to customers as they have not been able to install it cost-effectively.

"Prior to the development of NetServices' QoS products, deploying videoconferencing would have involved the installation of ethernets or leased lines, massively increasing the cost of the project.

"Our technology, however, reverses this situation, making cost-effective converged solutions available through the channel for the first time."

The benefits to videoconferencing using IP as opposed to ISDN are mainly in the quality of the service and the fact that ISDN costs significantly more.

Ian Carter (pictured), boss of Videonations, said: "We are always eager to harness the latest technologies. This partnership is a huge opportunity for us."