As part of the agreement, Tandberg Television will provide end-to-end broadcast encoding systems based on its industry leading MPEG-4 AVC compression technology.

The fully integrated 28+2 MPEG-4 AVC SD system will comprise Tandberg EN5930 encoders with Reflex statistical multiplexing, MX5640 multiplexers and nCompass control, which is used to transmit programming content via satellite. USDTV sends encrypted cable channels via satellite to local TV station partners where they are distributed over the air along with the broadcasters' primary channels, states an official release.

Once the compressed video signals reach the consumer's home, USDTV's unique MPEG-4 AVC to MPEG-2 transcoder produces DVD-quality images on any analog or digital television. USDTV's proprietary transcoding device ensures a smooth transition for existing customers who simply plug it into the USB port of their existing set-top-boxes. USDTV recently announced its second-generation set-top-box, which includes integrated MPEG-4 AVC capabilities and will be launched later this year, the release adds.