The use of IP telephony in businesses could improve organisational effectiveness and performance, according to the Communications Management Association (CMA).

Spokesman Maren Bennette said that 'unified communications' applications such as unified messaging, video conferencing and the merging of fixed and mobile communications bring about these benefits.

He also said that more affordable prices were leading more and more firms to invest in IP telephony.

"It is the fall in the price of IP handsets, together with the simplification of IP telephony systems (at the lower end of the manufacturers product portfolio) that has made it more attractive for smaller companies and organisations to install IP telephony and make use of VoIP services," he said.

Separately, consultancy illume consulting has found that many more UK businesses have adopted 'Centrex style' VoIP in the past few months. The UK market now has 154,000 users.

VoIP can improve operational performance but firms need to ensure they have adequate IT support in place.

According to recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent)