Bank of America deploys Cisco Internet phones

NEW YORK: Bank of America Corp. is beginning its deployment of 180,000 Cisco Internet phones in one of the largest installations of the technology by any corporation, network gear maker Cisco Systems Inc. has announced.

Bank of America will install Cisco phones throughout 5,800 banking centers and enterprise locations in the next three years, aided by systems integrator Electronic Data Systems which is helping the bank transition to its new voice and data network.

The new system will eliminate hundreds of private branch exchanges in favor of a single, centralized system and realize telecoms cost savings, it said.

The Bank of America deal is on par with Cisco's June agreement to supply 180,000 Internet phones to Boeing.

The technology known as voice over Internet Protocol (VOIP), which converts phone calls into data that travel over the Internet, is gaining popularity as companies look for ways to cut costs. According to industry research from the Yankee Group, 54 percent of the largest U.S. companies were either testing a VOIP service or considering a roll-out.

Last week, auto giant Ford Motor said it plans to install 50,000 Internet phones provided by SBC Communications, which are made by Cisco, over the next three years.