To use wavelet packets for lossy data compression, the following issues must be addressed: quantization of the wavelet subbands, allocation of bits to each subband, and best-basis selection. We present an algorithm for wavelet packets that systematically identifies all bit allocations/best-basis selections on the lower convex hull of the rate-distortion curve. We demonstrate the algorithm on tree-structured vector quantizers used to code image subbands from the wavelet packet decomposition.
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