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This year for the first time, Texaco isn't flying MBA students to its headquarters for second rounds of job interviews.

Interviews are being done by videoconference instead. Last month, Texaco managers saw and spoke with 120 MBA students at about 25 campus and hotel locations around the world. The company saved 20 days of interviewing time and $300,000 in travel costs.

Texaco's experience is an example of how businesses are finding wider uses for videoconferencing systems. As the technology improves, its costs fall and corporate demands for better productivity rise. In addition to job interviews, videoconferences also are frequently used for employee training and state-of-the-company speeches to employees and investors.

"It used to be just executive meetings, but now everybody's doing videoconferencing," says Amy Holmes, group manager for Sprint Business' collaborative services.

Videoconferencing equipment sales are rising as costs decline sharply. But unit sales have not increased enough to offset the lower dollar volume caused by falling prices, according to Frost & Sullivan. Small, easy-to-use systems are growing in popularity, especially among small and midsize companies.

Some hotel companies are outfitting their meeting rooms with videoconferencing equipment to attract more business. VirtuaLinc has contracted to install videoconferencing systems in business-class Cendant and Carlson Hospitality Worldwide hotels. Cendant brands include Ramada, Days Inn and Wingate Inn; Carlson hotel chains include Radisson and Regent. Wingate Inn is considering providing videoconferencing equipment as a value-added amenity for meetings.