NEC has developed its own audio coding algorithm using MPEG AAC (Advanced Audio coding) technology.

AAC is supported within some 3G specifications. It claims to offer CD-quality sound at 96kbps – NEC claims its new codec further decreases the required bit-rate, while maintaining the same audio quality.

The company claims that 128kbps of stereo CD quality (MP3) can be encoded in only 48kbps using its codec.

"An approximate reduction of 50 per cent from MPEG-4 AAC's current requirement of 96kbps. The new MPEG-4 AAC Ext.1 coding technology also supports high compatibility with current MPEG-4 AAC."

This technology has been developed primarily for use in mobile devices. It helps manufacturers in this sector by decreasing the space audio files may require while "maintaining current standards in sound quality."

NEC will demonstrate this technology at 3GSM World Congress and examine feasibility for adoption into mobile services for real-time, high audio-quality music delivery services.

Apple employs the AAC codec within the iTunes Music Store.