Harmonic Inc., a leader in digital video compression and IP delivery systems, announced that Video Networks Limited (VNL), provider of the HomeChoice entertainment and communications service, has completed the migration of its broadcast line-up to MPEG-4 AVC (H.264), becoming the world's first revenue-generating broadcast television service delivered exclusively using an advanced compression technology. This landmark event in the broadband TV industry, enabled by Harmonic's versatile DiviCom® MV 100 multi-codec encoding platform, definitively validates the promise of MPEG-4 AVC and the power of IPTV. It also affirms the technology and video quality leadership that has made the ultra-low bit-rate MV 100 the market's most widely deployed advanced codec-ready encoder.

In early 2004, VNL deployed Harmonic's high performance DiviCom MV 100—the industry's first broadcast-grade, real-time, multi-codec compression platform—and its own multi-codec set-top box for the new HomeChoice IPTV service. This gave VNL the ability to provision differentiated video services with MPEG-2 and build a strong foundation for future growth, then at a later date install the MPEG-4 AVC software option to cost-effectively extend its geographical reach and service-carrying capacity. Since April 2005, VNL has incrementally migrated groups of the operational MV 100 encoders to MPEG-4 in a process that was recently completed.

"The completion of our migration to MPEG-4 for the delivery of our broadcast channels is an important milestone for Video Networks. The ongoing improvements in advanced encoding will enable us to free up bandwidth which can then be used in our continuous quest to provide ever more advanced products and services for our customers," said Roger Lynch, Chairman & CEO, Video Networks Limited.

He added: "We are particularly proud to be the first company in the world to complete the MPEG-4 migration in broadcast. The move places a stake firmly in the ground for VNL and reinforces our position as world leaders in IPTV."

"We see the benefit of advanced encoding in MPEG-4, combined with European service providers' migration to ADSL2+ enabling the sector to provide HDTV in the very near future," he concluded.

VNL's successful transition is a testament to Harmonic’s best-in-class implementation of MPEG-4 AVC which is fully able to deliver the compression capabilities required for bandwidth-sensitive network operators to provision compelling, revenue-generating TV services. In addition, the expanded reach made immediately possible thanks to the efficiencies of MPEG-4 significantly enhances the service's cost structure, strengthening VNL's position in a dynamic entertainment services market. VNL's pace-setting IPTV service offering represents a model for how IPTV can radically change the consumer experience from a passive broadcast format to a highly personalized, interactive experience.

"Video Networks' move to MPEG-4 AVC, a historic event that will change the dynamics of the broadband TV industry, provides a strong technology platform for continued service innovation and business growth," said Patrick Harshman, President of the Convergent Systems Division of Harmonic Inc. "VNL's success highlights how Harmonic's singular focus on building value for its customers has produced groundbreaking products such as the DiviCom MV 100 multi-codec encoding platform. This approach minimizes the risk typically associated with emerging technologies while allowing operators to continuously grow their service portfolio and subscriber base. This is why, for example, approximately 4,000 advanced codec-ready DiviCom MV 100 systems are in service today, making it the world's most widely deployed encoding platform in its class."

As part of the complete Harmonic-based solution, VNL is also using Harmonic's NMX Digital Service Manager^TM to monitor and control its complete digital television infrastructure as a series of services, simplifying the provisioning of these services while ensuring maximum uptime. NMX's management automation facilities have streamlined VNL's conversion to MPEG-4 AVC and eliminated the potential for errors during the migration that can cause sustained unplanned downtime.