A system and method for wirelessly transmitting a video image signal from an endoscopic camera to a receiver or control unit for storage and/or display on a video monitor. Use of a frame-specific, variable compression algorithm capable of progressively encoding a data stream provides for a better performing and higher quality wireless endoscopic camera system capable of generating images at varying resolutions. Use of a short-range, high-performance wireless technology, such as Ultrawideband (UWB), improves the performance capabilities of the system, while minimizing power consumption and extending battery life. Implementations of error correcting codes, as well as the use of multiple transmitting and receiving antennas, further improve the fidelity of the wireless communication.