In telecommunication 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 end 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. How it works The dynamic range of a signal is compressed before transmission and is expanded to the original value at the receiver. The electronic circuit that does this is called a compander and works by compressing or expanding the dynamic range of an analog electronic signal such as sound recorded by a microphone. One variety is a triplet of amplifiers: a logarithmic amplifier, followed by a variable-gain linear amplifier and an exponential amplifier. Such a triplet has the property that its output voltage is proportional to the input voltage raised to an adjustable power. Companded quantization is the combination of three functional building blocks – namely, a (continuous-domain) signal dynamic range compressor, a limited-range uniform quantizer, and a (continuous-domain) signal dynamic range expander that inverts the compressor function. This type of quantization is frequently used in telephony systems. In practice, companders are designed to operate according to relatively simple dynamic range compressor functions that are designed to be suitable for implementation using simple analog electronic circuits. The two most popular compander functions used for telecommunications are the A-law and μ-law functions. Applications Companding is used in digital telephony systems, compressing before input to an analog-to-digital converter, and then expanding after a digital-to-analog converter. This is equivalent to using a non-linear ADC as in a T-carrier telephone system that implements A-law or μ-law companding. This method is also used in digital file formats for better signal-to-noise ratio (SNR) at lower bit depths. For example, a linearly encoded 16-bit PCM signal can be converted to an 8-bit WAV or AU file while maintaining a decent SNR by compressing before the transition to 8-bit and expanding after conversion back to 16-bit. This is effectively a form of lossy audio data compression. Professional wireless microphones do this since the dynamic range of the microphone audio signal itself is larger than the dynamic range provided