Overheads associated with MPEG-4 video compressed packets reduce bandwidth efficiency. Mobile operators may save a significant percentage of the required bandwidth using IP header compression technologies, and thereby reduce necessary investments. In this paper, a novel header compression scheme for MPEG-4 video packets is proposed and analysed. It is designed to complement existing IP header compression schemes. MPEG-4 video packet headers contribute a significant portion of video packet size, particularly when error resilience options are switched on. Redundancy present in consecutive packet headers permits efficient header compression. The results show significant improvement in video objective and subjective qualities. § Occurance (% ) Figure A1: Average probability of occurrence of motion data length for carphone, foreman and, suzie with different packet sizes and parameter settings.