Compression is a serious problem in capsule endoscopy applications. It dictates the power consumption characteristics and the capsule life. In this paper a hybrid DCT and DWT compression method is employed to capitalise the advantages of both the techniques. The method involves in generating color data of the white band and narrow band images in an intermediate format and then generating the decompressed image. The quality of the decompressed image is evaluated in terms of mean square error (MSE), signal to noise ratio (SNR) and peak signal to noise ratio (PSNR).
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