Cisco to Parry With Skype For TV Sets - Set to Launch Consumer Version of its High End Video Conferencing Technology

written by: Richard Kastelein

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Published on Saturday, 02 October 2010 10:00

Cisco is to announce their riposte to Skype's move into connected and smart TV with an announcement on Wednesday, says Quentin Hardy at Forbes.

Word is that it has something to do with the high-end two-way video Cisco calls “telepresence.” We’ll see how many comparisons with Google TV are written.

However, in a move that seems eerily like Hollywood's answer to the changing dynamics of their market, Cisco actually believe that consumers will pay an extraordinary sum for their product.

The Wall Street Journal first leaked the rumour, revealing they are developing a telepresence product for homes. Problem is - the Cisco system, which includes a video camera and a device that connects high-definition TVs to the Internet, will be priced at $600 and require a $30 monthly subscription fee which is probably what you can buy a Panasonic or Samsung TV with Skype which happens to be free for the basic version.

“Cisco has been trying to woo companies with conferencing-room setups it markets under the term "telepresence," to indicate the realism of the experience. It has also been using acquisitions to beef up its capabilities in the field,” the WSJ reported on Thursday.

Skype is also opening up it's proprietary software for third party developers - think Facebook and iPhone apps and segue to all kinds of new possibilities around Skype with innovation being driven by hundreds or thousands rather than a few cubicles at their central offices. Cisco does not have a chance. Particularly if Skype gets into bed with Facebook as it's rumoured. A fusion of social media, teleconferencing, and chat with recommendations is truly a multiscreen social TV behemoth. 

Follow Skype's TV progress on Twitter at  @skypeonyourtv