I have a CME system and I wish the calling party to have visibility of the dialled extension status. ie. Currently the calling party has no indication (visual or audio) as to whether the extension they are trying to dial is busy or not.
if you wish to have a user be able to see the status of another users line, you can create a 'shared line' that appears on both users phone.
this is usually the easiest setup although it does require configuring dual-line for the ephones and putting the same DN on both phones. (it is effective though; an icon on the line will tell one user that the other is on the line)
Just to add a little to Greg's good answer, you can use the monitor feature listed below (especially good for reception type positions);
Monitor Lamp and Direct Station Select
For multibutton phones and expansion modules, the buttons for lines that are shared with other phones can be designated as monitor buttons. A monitor button is created primarily to show the status of a line that also appears on another phone. When the shared line is in use on the other phone, the console display for the line's monitor button shows an icon of a phone covered by an X. An idle line is represented by an icon of a phone with the handset in the on-hook position. Monitor buttons cannot be used to make outgoing calls, as opposed to line buttons for ordinary shared lines. This functionality is known on private branch exchange (PBXs) as a monitor lamp.
When a monitored line is idle, pressing the monitor button will speed-dial the monitored line. This functionality is sometimes known as fast transfer or direct station select.
The monitor lamp feature is configured using the m keyword of the button command. This feature can be configured on any multibutton IP phone, such as a Cisco IP Phone 7960G with one or two Cisco IP Phone 7914 modules. Phones are configured with a shared line for each extension that uses the monitor function.
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