As a result, users of the service will be able to access it with an internet connection of 3.9 Mbps rather than the current 7 Mbps.
The new codec also supports 4K, which Telly plans to introduce at a later date.
The internet TV service Telly TV currently offers viewers 132 channels, 79 of which are in HD. The new codec works with Arris VIP4205 set-top boxes and will be gradually included in other applications.
Sports fans who watch the channels Digi Sport 1-3 HD and Premier Sport HD via the Arris VIP4205 set-top box will also be able to use a special HD profile with a data rata of 7 Mbps to enhance their viewing experience.
The classic HD with a data rate of 3.9 Mbps will also be available to them.