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Edition: U.S. Article Comments (0) Follow Reuters Facebook Twitter RSS YouTube Read Clinton: allergy, not anguish in my bin Laden photo 6:54am EDT Photos show three dead men at bin Laden raid house 04 May 2011 Oil plummets more than 8 percent as commodities battered 2:18pm EDT Boehner "optimistic," demands trillion-dollar cuts 1:55pm EDT Photos show three dead men at bin Laden raid house 5:51am EDT Discussed 168 Obama to make statement late Sunday, White House says 138 Concerns raised over shooting of unarmed bin Laden, burial 119 Donald Trump calls U.S. leaders ”stupid” Watched Legendary founder of Seal Team Six speaks 9:29am EDT Video of bin Laden compound fire Mon, May 2 2011 Bin Laden unarmed when killed - White House Tue, May 3 2011 Huawei, ZTE to shake up video conferencing: Ovum Tweet Share this By Tarmo Virki, European Technology Correspondent HELSINKI (Reuters) - Video conferencing services developed by Huawei and ZTE will shake up the market in coming years in the same way the Chinese vendors changed the telecom gear sector, research... Email Print Related News Exclusive: Facebook, Google mull Skype deals 10:25am EDT Huawei, ZTE to shake up video conferencing-Ovum 9:23am EDT Special report: Can China's billions spur the next big idea? 4:27am EDT Applied Materials to buy Varian Semi for $4.9 billion Wed, May 4 2011 RIM launches new BlackBerry Bold smartphone Mon, May 2 2011 Analysis & Opinion Deals wrap: Facebook, Google dueling suitors for Skype Tech wrap: Sony says Anonymous set stage for breach Related Topics Technology » Media » Stocks By Tarmo Virki, European Technology Correspondent HELSINKI | Thu May 5, 2011 2:01pm EDT HELSINKI (Reuters) - Video conferencing services developed by Huawei and ZTE will shake up the market in coming years in the same way the Chinese vendors changed the telecom gear sector, research firm Ovum said on Thursday. Ovum forecast that business spending on video conferencing would grow annually by 6 percent through 2016 when the global market would be worth $3.8 billion. The video conferencing equipment market is dominated by established U.S. vendors Cisco and Polycom, but Ovum said Huawei Technologies and ZTE, both small players now, are set to have a major impact on the market in next two to four years. "We expect them to cause quite a lot of disruption," Ovum analyst Richard Thurston said. Huawei and ZTE together have built up a 30-percent share of the global mobile telecom gear in a few years through aggressive pricing which pushed vendors like Nortel and Motorola out of the business. Ovum said some parts of the videoconferencing market were set for much higher growth: 19 percent annually for high-end offerings such as telepresence rooms costing some $300,000 each and 11.5 percent for managed services. Growth of the overall market will be held back by falling prices and corporate usage shifting increasingly to workers' desktops from dedicated conferencing hardware. This is boosting demand for video technologies companies like venture-backed Vidyo, whose software platform is used by HP, Google, Hitachi, and Ricoh for their video conferencing offerings. "The market for desktop video conferencing is huge and continues to grow with support on smartphones and tablets," said Ofer Shapiro, chief executive of Vidyo. Ovum's Thurston agreed: "Mobile is one of the next frontiers in video conferencing." Thurston said enterprises were likely to remain the main audience of videoconferencing technology providers as much lower-priced consumer offerings are still struggling to compete against free service from Skype. (Editing by David Cowell) Technology Media Tweet this Share this Link this Digg this Email Reprints We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language, all capital letters or appear to be spam, and we review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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