Cisco, one of the leading networking equipment manufacturers, announced its first home videoconferencing set-up on Wednesday in San Francisco. The set-up, called Umi telepresence, is a “tranformational” consumer-level videoconferencing system that allows users to connect to others from their living rooms.

The Umi telepresence set-up comprises a set-top box, a simple IR remote, a panning-and-zooming 1080p camera and microphone unit which can be placed atop an HDTV. The set-up becomes functional when a user supplies the HDTV and the broadband connection to it.

Talking about the Umi telepresence set-up to his audience of press and analysts at the system’s roll-out, Cisco’s emerging technologies group headman Martin De Beer said: “Umi telepresence is about you and me connecting in new ways, right in your living room.”

However, initially the buyers of Umi telepresence – which will likely be shipped from November 14, and will be available at Best But retail stores - will be able to communicate only with other owners of the device and users of Google’s free video chat service.

According to Cisco, the cost of the Umi telepresence set-up is $599; and the required service involves an additional $24.99 monthly charge for allowing users to make unlimited video calls.

Analysts are of the opinion that the pricey premium device and its monthly fee may discourage some US customers; and the fact that the set-up is aimed at the high-niche US buyers, having the high bandwidth advantage, may further limit the potential for the device’s wide adoption.