We describe a trellis-based algorithm which enables R-D optimum quantizatio
n decisions in the H.263+ video coding standard. The algorithm allows the q
uantization decisions for all coefficients in a block to be made jointly, a
nd experiments conducted using H.263+ for video coding rates of 40-50 kbps
show an average improvement of 3.5% in bitrate relative to implementations
which Follow the International Telecommunications Union (ITU) Test Model sp
ecifications in making quantization decisions.