A research alliance is formed between Erlangen-Nuremberg University and the Fraunhofer Institute for Integrated Circuits. Led by Prof. Heinz Gerhäuser (Fraunhofer IIS), the joint research team puts up a functional real-time codec of the LC-ATC (Low Complexity Adaptive Transform Coding) algorithm as the basis for its research.
In 1989, Brandenburg finished his doctoral thesis on the OCF algorithm (Optimum Coding in the Frequency Domain), a codec exhibiting a number of characteristics of the today's MP3 technology, including a high frequency resolution filterbank, non-uniform quantization, Huffman coding, and its side information structure. The basic OCF technology is extended towards a system that is capable of coding audio signals at 64 kBit/s in good quality for the first time worldwide, with the capability of transmitting music in real-time over telephone lines.
A new high-performance audio codec called ASPEC (Adaptive Spectral Perceptual Entropy Coding) codec was developed as an improved OCF and contributed by Hannover University, AT&T, and Thomson. The partners proposed ASPEC in 1989 for the forthcoming MPEG audio standard. MPEG in total received 14 proposals for audio coding. The audio coding contributions were merged into four proposals including ASPEC and MUSICAM. After several formal tests, MPEG suggestted to erect a family of three audio coding schemes from MUSICAM and ASPEC: Layer 1 is a low complexity variant of MUSICAM, Layer 2 an optimized version of MUSICAM and Layer 3 is based on ASPEC. The evolution from ASPEC to the final "MP3" (MPEG-1, Layer 3) codec involves some technological harmonization with the other planned MPEG-1 audio coders and the addition of a joint stereo coding mode.
Michael Robertson started mp3.com as a web site for information about mp3 technology.