ndberg has become the standout in high- end room systems. Other competitors fight for a small fraction of the market. Founded in 1976, CLI was the first of the U.S. codec manufacturers to introduce a group system product: CLI's VTS 1.5 reached the market in September 1982. It provided good picture quality, particularly considering that a single T-1 provided the signal. The VTS 1.5 was the first product to make heavy use of intraframe coding. In 1984, CLI tightened up its breakthrough codec: the VTS 1.5E. It provided very good picture quality, particularly considering that a single T-1 pipe was used to transport the signal. The VTS 1.5 was the first product to make heavy use of intraframe coding. In 1984, CLI tightened up the algorithm and rolled out a new codec: the VTS 1.5E. It compressed the signal down to bandwidths of 512 Kbps. The VTS 1.5E featured a new algorithm, Differential Transform Coding (DXC TM), which Video Communications: The Whole Picture offered picture quality improvements SO dramatic that it became the cornerstone of CLI's product line. A variation of DXC called discrete cosine transform went on to form the basis of three important image compression standards: JPEG, MPEG and H.261/H.263. Figure 13-3. Rear View of Set-top System (courtesy of Polycom). In 1984, Picture Tel was formed. Its research in low-bandwidth digital video signal compression led to the introduction, in 1986, of a compression technique dubbed Motion Compensated Transform (MCT). MCT became the basis of PictureTel's C- 2000 codec that compressed video and audio signals down to transmission rates of 224 Kbps. In 1988, PictureTel introduced its C-3000 codec based on a new algorithm called Hierarchical Vector Quantization (HVQ) that compressed the signal to 112 Kbps with acceptable quality. Switched 56 service was making its debut in the U.S. and ISDN BRI was emerging in Europe, SO HVQ was well-timed. In 1988, PictureTel shipped 150 C-3000 systems. In 1989, they sold more than 600 systems. Over the next five years, the majority of