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A videoconference system is generally higher cost than a videophone and deploys greater capabilities. A videoconference (also known as a videoteleconference) allows two or more locations to communicate via live, simultaneous two-way video and audio transmissions. This is often accomplished by the use of a multipoint control unit (a centralized distribution and call management system) or by a similar non-centralized multipoint capability embedded in each videoconferencing unit. Again, technology improvements have circumvented traditional definitions by allowing multiple party videoconferencing via web-based applications.

What is a multi-point control unit?
call management system