Telepresence, a high-definition videoconference system that simulates face-to-face meetings between users, is becoming increasingly popular with smaller firms. Previously, the technology was mostly used by large multinational corporations. High travel prices and improved video conferencing technology combine to explain this growth. The price of the system varies depending on the number of screens, with the systems generally starting around $200,000. However, some companies are creating lower-cost systems to encourage small companies to adopt the technology. Start-up LifeSize Communications Inc. offers a much less expensive system that has slightly less high-end video and audio. Hewlett-Packard Co. has a high-end system for just two meeting participants. HP and Cisco Systems Inc. have both announced deals with hotel chains to offer the technology to business travelers. Lower-end video conferencing still dominates the market, with only 1,000 systems of the 176,000 sold last year being telepresence. Telepresence allows meeting participants to move smoothly and appear life sized. Sound quality is much higher than with traditional systems and participants can share documents. Participants may also be in more than two locations. Heavy marketing by HP and Cisco is helping to grow the market for such systems. Some providers also charge monthly fees to run the systems, further raising the cost. Also, some companies need to update their networks to accommodate the systems.