In this article we will describe the results of a study to determine the utility of compressed video techniques for medical diagnostic image consultation. This study was designed to assess the feasibility of decreasing bandwidth requirements from 90 megabits per second (Mbits/sec) to T-1 rates (1.5 Mbits/sec) using state-of-the-art coders/decoders with the most modern data compression algorithms. Vendors provided T-1, H.261 standard video codec devices which were CCITT Px64 compliant, with a selected data rate of 1.5 Mbit/sec and motion video resolution set to F-CIF at 30 frames/sec. The T-3 (45 Mbit/sec) codecs use pulse code modulation as the transmission format, with a line code format of B3ZS. The tests quantified the performance of the codecs by comparing the input test images to the output images after compression by the vendors' codecs. Evaluations were conducted utilizing common National Television Systems Committee industry performance standards, as well as the Society of Motion Picture and Television Engineers Publican Recommended Practice (RP-133) for medical diagnostic imaging. Results indicated that the T-1 video codecs available at the time of the tests could not provide either the contrast or spatial resolution necessary for diagnostic medical image consultation.