The Internet Encyclopedia (Volume 3)

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REFERENCES 551

The number of subscribers is based on the projected
number of broadband users from Lathen (1999); the us-
age of video on demand (VoD) is projected from the Broad-
wing Investor Relations (1999) report on the usage of the
Cincinnati Bell Zoomtown movie-on-demand system; the
buy rates and studio paybacks are based on the most
conservative model described inVideo on Demand 2001
(2001).
Projected server and stream costs are those indi-
cated by Real Media (http://www.real.com) combined
with Moore’s Law (costs halve in 18 months) with software
costs amortized by straight line depreciation over three
years and hardware costs depreciated over five years;
bandwidth and racking costs are from the New York
Band-X exchange with double Moore’s Law (costs halve in
9 months); staffing profile of 1 customer service represen-
tative (CSR) per 200,000 customers with burdened labor
rate similar to the minimum wage in the United States and
relatively conservative marketing and promotional costs
of 1% gross revenue.

Customer Relationship Management over
Third Generation Mobile Networks
As the saying goes, “People prefer to buy from people
they trust.” Many people trust information presented
visually. Video-enabled commerce, developed indepen-
dently by Avaya (http://www.avaya.com) and Media Logic
Systems Ltd. (http://www.iseetv.net) can facilitates sales,
develop customer relations, and prevent churn.
Lucent Technologies (1996) announced a multimedia
call center which makes skilled employees available to
customers at remote computers and kiosks via H.320 and
T.120 video conferencing links over telephone lines. Ac-
cording to Lucent “video infomercials can educate or mar-
ket the caller while in queue or on hold.”
Table 6 shows a hypothetical business model for a
live video customer service application in Japan using
MPEG-4 facial animation at 2000 bps (Tekalp and
Ostermann, not dated) delivered over NTT DoCoMo
iMode screen phones with 9.6 kbps connectivity. Band-
width costs and revenue share are based on the current
iMode pricing model together with double Moore’s Law
cost reduction. Subscriber numbers are based on a cur-
rent figure of 27,000,000 adding 40,000 subscribers per
day (from http://www.imode.com).
Table 7 shows a hypothetical business model for a
live video adult services application in Japan using ITU-T
H.261 over H.324 terminals at 384 kbps delivered
over the freedom of mobile multimedia access (FOMA)
packet-switched system. Bandwidth costs and revenue
share are based on the current FOMA pricing model
(Imazu & Kuroda, 2001) together with double Moore’s
Law cost reduction. Subscriber numbers are based on a
current figure of 55,000 (Ovum Research, 2002) adding
15,000 subscribers per month.

CONCLUSION AND FUTURE
OUTLOOK
Three significant business opportunities have been pre-
sented with hypothetical business models together with
areas for future progress in video compression research. It

may be thought that the advent of high-performance high-
bandwidth connection such as Internet2 would obviate
the need for video compression. However, we have seen
that increased availability leads to increased demand for
bandwidth with applications such as remote telesurgery
leading the way. The primary risks in the video compres-
sion field relate to ongoing patent litigation. Since “people
prefer to buy from people” and many people trust infor-
mation presented visually, video compression facilitates
commerce by providing a significant component of in-
frastructure for visual electronic communications. More
research is need in the areas of one and two-way mo-
bile videoconferencing together with significant improve-
ments of compression methods and more liberal licensing
agreements.

GLOSSARY
Frame Image from video sequence.
Hyperspectral Recorded in multiple spectral bands.
Lossless Reversible, exact.
Lossy Irreversible, approximate.
Scene Sequence of frames.

CROSS REFERENCES
SeeData Compression; Speech and Audio Compression.

REFERENCES
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olution and aspect ratio Conversions.Retrieved May 8,
2002, from http://www.iki.fi/znark/video/conversion
American National Standards Institute (1996). Digi-
tal transport of one-way video signals-parameters for
objective performance assessment [ANSI T1.803.03–
1996]. Retrieved May 11, 2002, from American Na-
tional Standards Institute Web site, http://www.ansi.
org
Bell, S., Diaz, B., Holroyd, F., & Jackson, M. (1983). Spa-
tially referenced methods of processing raster and vec-
tor data.Image and Vision Computing, 1(4), 211–220.
Bormans, J., & Hill, K. (2000).MPEG-21: Defining and
standardising a multimedia framework. Retrieved
August 15, 2002, from MPEG Web site, http://mpeg.
telecomitalialab.com/documents/ibc2000tutorial/
Bormansfiles/frame.htm
Broadband Week (2002, March 1).Broadband direct[NTT
Docomo sees 6 Million 3G Subscribers by 2004].
Retrieved May 10, 2002, from Broadband Week Web
site, http://www.broadbandweek.com
Broadwing Investor Relations. (1999, October 22).Cincin-
nati bell delivers strong revenue and margin growth
[press release]. Retrieved May 12, 2002, from Broad-
wing Investor Relations Web site, http://investor.
broadwing.com/news/19991022–13188.cfm
Cheung, K., & Tong, K. (1993, April 2). Proposed data
compression schemes for the Galileo S-Band contin-
gency mission. Paper presented at the 1993 Space and
Earth Science Data Compression Workshop, Snow-
bird, Utah.
Chiariglione, L. (1996).Coding of moving pictures and as-
sociated audio for digital storage media at up to about
1, 5 Mbit/s[Short MPEG-1 description]. Retrieved
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