diff --git a/capi.conf b/capi.conf
index e5eec46..9b4fa26 100644
--- a/capi.conf
+++ b/capi.conf
@@ -26,7 +26,9 @@ softdtmf=on      ;enable/disable software dtmf detection, recommended for AVM ca
 relaxdtmf=on     ;in addition to softdtmf, you can use relaxed dtmf detection
 accountcode=     ;Asterisk accountcode to use in CDRs
 context=capi-in  ;context for incoming calls
-hold=yes         ;when Asterisk put on hold, ISDN HOLD shall be used
+holdtype=hold    ;when Asterisk puts the call on hold, ISDN HOLD will be used. If
+                 ;set to 'local' (default value), no hold is done and Asterisk may
+                 ;play MOH.
 ;immediate=yes   ;immediate start of pbx with extension 's' if no digits were
                  ;received on incoming call (no destination number yet)
 ;echosquelch=1   ;_VERY_PRIMITIVE_ echo suppression
diff --git a/chan_capi.c b/chan_capi.c
index 0ca4b19..3ddc95f 100644
--- a/chan_capi.c
+++ b/chan_capi.c
@@ -1160,6 +1160,7 @@ static struct ast_channel *capi_new(struct ast_capi_pvt *i, int state)
 	i->doES = i->ES;
 	i->outgoing = 0;
 	i->onholdPLCI = 0;
+	i->doholdtype = i->holdtype;
 	i->B3q = 0;
 	ast_mutex_init(&i->lockB3q);
 	memset(i->txavg, 0, ECHO_TX_COUNT);
@@ -3174,6 +3175,7 @@ static int capi_hold(struct ast_channel *c, char *param)
 	char buffer[16];
 	char	fac[4];
 
+#warning TODO: support holdtype notify
 	if (i->isdnstate & CAPI_ISDN_STATE_HOLD) {
 		ast_log(LOG_NOTICE,"%s: %s already on hold.\n",
 			i->name, c->name);
@@ -3435,14 +3437,14 @@ static int capi_indicate(struct ast_channel *c, int condition)
 	case AST_CONTROL_HOLD:
 		cc_ast_verbose(3, 1, VERBOSE_PREFIX_2 "%s: Requested HOLD-Indication for %s\n",
 			i->name, c->name);
-		if (i->hold) {
+		if (i->doholdtype != CC_HOLDTYPE_LOCAL) {
 			ret = capi_hold(c, NULL);
 		}
 		break;
 	case AST_CONTROL_UNHOLD:
 		cc_ast_verbose(3, 1, VERBOSE_PREFIX_2 "%s: Requested UNHOLD-Indication for %s\n",
 			i->name, c->name);
-		if (i->hold) {
+		if (i->doholdtype != CC_HOLDTYPE_LOCAL) {
 			ret = capi_retrieve(c, NULL);
 		}
 		break;
@@ -3655,7 +3657,7 @@ int mkif(struct ast_capi_conf *conf)
 		tmp->callgroup = conf->callgroup;
 		tmp->group = conf->group;
 		tmp->immediate = conf->immediate;
-		tmp->hold = conf->hold;
+		tmp->holdtype = conf->holdtype;
 		
 		tmp->smoother = ast_smoother_new(AST_CAPI_MAX_B3_BLOCK_SIZE);
 
@@ -4025,9 +4027,13 @@ static int conf_interface(struct ast_capi_conf *conf, struct ast_variable *v)
 			}
 			continue;
 		}
-		if (!strcasecmp(v->name, "hold")) {
-			if (ast_true(v->value)) {
-				conf->hold = 1;
+		if (!strcasecmp(v->name, "holdtype")) {
+			if (!strcasecmp(v->value, "hold")) {
+				conf->holdtype = CC_HOLDTYPE_HOLD;
+			} else if (!strcasecmp(v->value, "notify")) {
+				conf->holdtype = CC_HOLDTYPE_NOTIFY;
+			} else {
+				conf->holdtype = CC_HOLDTYPE_LOCAL;
 			}
 			continue;
 		}
diff --git a/chan_capi.h b/chan_capi.h
index 81ba214..2019640 100644
--- a/chan_capi.h
+++ b/chan_capi.h
@@ -129,6 +129,10 @@ typedef struct fax3proto3 {
 #define FACILITYSELECTOR_SUPPLEMENTARY  3
 #define FACILITYSELECTOR_ECHO_CANCEL    6
 
+#define CC_HOLDTYPE_LOCAL               0
+#define CC_HOLDTYPE_HOLD                1
+#define CC_HOLDTYPE_NOTIFY              2
+
 /*
  * state combination for a normal incoming call:
  * DIS -> ALERT -> CON -> BCON -> CON -> DIS
@@ -246,8 +250,9 @@ struct ast_capi_pvt {
 	int isdnmode;
 	/* Answer before getting digits? */
 	int immediate;
-	/* Use ISDN HOLD */
-	int hold;
+	/* which holdtype */
+	int holdtype;
+	int doholdtype;
 
 	/* Common ISDN Profile (CIP) */
 	int cip;
@@ -319,7 +324,7 @@ struct ast_capi_conf {
 	int ectail;
 	int isdnmode;
 	int immediate;
-	int hold;
+	int holdtype;
 	int es;
 	unsigned int callgroup;
 	unsigned int group;