In this thesis, a low bit rate video coding system based on three-dimensional (3-D) wavelet coding is studied. In addition to the initial motivation to make use of the motion compensated wavelet based coding schemes, the other techniques that do not utilize the motion compensation in their coding procedures have also been considered on equal footing. The 3-D wavelet transform (WT) algorithm is based on the &ldquo / group of frames&rdquo / (GOF) concept. The group of eight frames are decomposed both temporally and spatially to their coarse and detail parts. The decomposition process utilizes both orthogonal and bi-orthogonal wavelet analysis filters. The transform coefficients are coded using an embedded image coding algorithm, called the &ldquo / Two-Dimensional Set Partitioning in Hierarchical Trees&rdquo / (2-D SPIHT). Due to its nature, the 2-D SPIHT is applied to the individual subband frames. In the reconstruction phase, the 2-D SPIHT decoding algorithm and the wavelet synthesis filters are employed, respectively. The Peak Signal to Noise Ratios (PSNRs) are used as a quality measure of the reconstructed frames. The investigations reveal that among several factors, the multi-level (de)composition is the dominant one effective both on the signal compression and the PSNR level. The encoded videos compressed to the ratio of 1:9 are reconstructed with the PSNR of about 30 dB in the best cases.

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