What is "companding"

n. (context electronics English) A process in which noise in a signal is reduced by selective compression and expansion

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 combination of the words compressing and expanding. 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.