Guys,

This is turning into a bit of a flame war, and as it's nice and hot now
I'll say my two eurocents.

Conversion from analog to digital is most certainly *NOT* compression.
It is a translation to a totally different representation of the data
and whether or nor analog information is lost in the A-D conversion
is irrelevant to "compression".

Compression is only really relevant in the digital domain and implies
a reduction in the size of a certain chunk of information. We all
regularly use lossy and lossless compression, the ZIP format being
lossless- you can't run an approximate version of a program, and JPEG
etc being lossy.

The lossy algorithms work because they throw away information that in
"sensual data" which at present means video and audio files, is info we
humans cannot generally detect.  Whether it is video or audio or both is
irrelevant.  If the amount of raw data transmitted is reduced from the
original source, then you are compressing.  I don't care if you throw
bit-reduction wotnot into the tank, ATRAC stores 44.1KHz/16-bit stereo
info in a fifth the raw data space.  In my book that is compression and
anyone who disagrees needs their head examined!

And as for the mobile phone debate, I would be absolutely amazed if
some form of compression wasn't used by digital phones, and also the
DECT cordless phones that are commonplace in Britain.  It would be
crazy to allocate the bandwidth for uncompressed digital signals--
just compare a 8khz 8bit WAV with a 16bit (any freq) JPEG compressed
file, the MPEG is a fraction of the size and sounds a damn site better.

Cheers,
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