Fax uses FSK modulation to transmit the data. If you compress this in a lossy way (GSM, MP3, whatever) then the integrity of the data is affected (more or less seriously depending on the codec used). Fax machines are generally quite picky, so compressing faxes is unlikely to work.
Its actually DPSK or QAM (depending on the bit rate), not FSK. FSK is used for the control information, but not for the image.
Regards, Steve
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