A codec for videoconferencing purposes [8]-[12], [31] is proposed based on the one-at-a-time search (OTS) motion compensation algorithm [1], [30], [31]. The coder is implemented in an interframe hybrid mode using the

-matrix transform (CMT) [13]-[15]. The motion estimation algorithm employed is simple and reduces temporal redundancy, while the CMT reduces spatial redundancy in the transmitted prediction errors. The operation of the codec is presented. Simulation results based on three different scenes with varying levels of motion are presented. The coder operates in a feedback mode.