A waveform before and after the compression stage of non-linear companding

In telecommunication, signal processing, and thermodynamics, companding (occasionally called compansion) is a process of mitigating the detrimental effects of a channel with limited dynamic range. The name is a portmanteau of compressing and expanding.

While the compression used in audio recording and the like depends on a variable-gain amplifier, and so is a locally linear process (linear for short regions, but not globally), companding is non-linear and takes place in the same way at all points in time. 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 compandor and works by compressing or expanding the dynamic range of an analog electronic signal such as sound. One variety is a triplet of amplifiers: a logarithmic amplifier, proceeded 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. Compandors are used in concert audio systems and in some noise reduction schemes such as dbx and Dolby C.

Companding can also refer to the use of compression, where gain is decreased when levels rise above a certain threshold, and its complement, expansion, where gain is also decreased when levels drop below a certain threshold. The usage of expansion here is strictly pre-transmission, for the purpose of a reduction in noise levels.

Companding is used in professional wireless microphones to improve the dynamic range of the microphone (the dynamic range of the microphone itself is higher than the dynamic range of the radio transmission).

The use of companding allows signals with a large dynamic range to be transmitted over facilities that have a smaller dynamic range capability. Companding reduces the noise and crosstalk levels at the receiver.