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H.261 is an increasingly obsolete 1990 ITU video coding standard specifically designed for transmission over ISDN lines in that data rates are multiples of 64 kbit/s. The standard supports CIF and QCIF video frames at resolutions of 352x288 and 176x144 respectively. The coding algorithm is a hybrid of inter-picture prediction, transform coding, and motion compensation. The datarate of the coding algorithm was designed to be able to be set to between 40 Kbits/s and 2 Mbits/s. The inter-picture prediction removes temporal redundancy. Transform coding removes the spatial redundancy. Motion vectors are used to help the codec compensate for motion. To remove any further redundancy in the transmitted bitstream, variable length coding is used.
See also, video compression and Common Intermediate Format.