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I think the phone should display the extension number AND the name. Why? When you pick up a phone to dial a someone, you are typing their extension, not their name. So the phone should visually show you what you need to dial; the name isn't much help. With just the name, one must then go use a computer to look up the extension.
FYI - I do not consider manually adding the extension number to the name field an appropriate solution, as that is not system generated / elegant. The data that is in a field should match the data type for the field.
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