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In 2003 a combined Task Force of International Organization for Standardization (BO) and the International Telecommunication Union (ITU) developed the new video coding scheme called H.264/AVC also h o w as MPEG-4 Part IO. This new coding scheme supporfs a wide array of diflerent formats and application ranging from small dispIays of mobile phones to the large High Defznition displays in our future living rooms. Given that H.264/A VC signficantly improves the quality of coded video signals, ut a given data rate when compared to the existing MPEG-2 standard, there is a considerable inferest in the consumer industly for devices supporting K.264/A YC. However, the business case for video processing in consumer devices can be extremely cost sensitive. This applies especially to the transmission of video over broadband, where the cost of the Set-Top Box (STB) is a major part of the investment for the operator. To be economically viable, the H264/A VC enabled STB for video over broadband must be as low-cost as possible. In this paper the various technical options for the implementation of H.264/AYC available in 2003 and their development over time are discussed. i n this document the focus is on STBs supporting video over broadband channels with Standard Resolution (SO). The solution chosen by the author and the resulting STB developed by Siemens AG is presented Index Terms -H.264/AVC, set-top box, system on chip, IPTV

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