Your question would be better under CM/Aura (Definity), I think.
J169 phones with H.323 firmware work exactly like the 9600 series H.323 phones. The Contacts button is for your personal contacts - Internal or External - and are programmed manually per phone.
I believe the maximum number of contacts is 250 so if you have 250 or less stations then you could program them all. If you are somewhat savvy with PowerShell scripts or DOS Batch file commands then you could enter all the contacts once then copy that information into every phone's Backup File so everyone's Contacts would be the same. That's a lot of work and isn't really straight forward, especially if you are using Avaya's Utility Server or AADS where it is nearly impossible to get to the files directly.
Instead, H.323 phones can be programmed with the Directory, Next, and Call-Disp buttons to search the Stations by name in real time. That means every new hire or name change would be available immediately to every phone. That's a lot less work than programming every phone's contacts.
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