> > Wouldn't it make more sense to transmit MPEG over IP?

In an ideal world, yes.  (In fact, this is already dealt with in RFC 2250, 
which defines how MPEG-1 or 2 elementary or transport streams are carried 
over RTP/UDP/IP.)  But, as usual, we don't live in an ideal world :-)

>If we can leverage those existing links, and get IP into them,
>eventually the IP will become a "must have" feature, and then
>eventually the link configuration will be re-engineered and
>"inverted", with IP taking it's rightful place at the "true" layer 3.

Exactly!

         Ross.

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