Companding

A signal before (top) and after μ-law compression (bottom)

In telecommunications and signal processing, companding (occasionally called compansion) is a method of mitigating the detrimental effects of a channel with limited dynamic range. The name is a portmanteau of the words compressing and expanding, which are the functions of a compander at the transmitting and receiving ends, respectively. The use of companding allows signals with a large dynamic range to be transmitted over facilities that have a smaller dynamic range capability. Companding is employed in telephony and other audio applications such as professional wireless microphones and analog recording.