The greatest issue I have when working, or even just talking with people in different places is not technological, but timezones.
I don't want to be catching up with my family in Europe at my 3am in the morning. Or working a hard problem at my 9pm to be in touch with people in India.
I think if you are in the same timezone good video conferencing works really well.
Timezone are pretty awful for across the ocean work, but within most countries is pretty minimal. An hour or two is really a low bar objection to telecommuting.
I don't want to be catching up with my family in Europe at my 3am in the morning. Or working a hard problem at my 9pm to be in touch with people in India.
I think if you are in the same timezone good video conferencing works really well.