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Real-time, packet by packet compression was a standard feature in 1st and 2nd generation wireless networks. For these networks, air link resources were scarce and the additional CPU cost of compressing individual packets was justified in the gain to capacity. The V.42bis standard became fairly widespread in this regard as it has a good trade-o of compression against CPU load. However, starting with 3rd generation systems (UMTS, etc.), compression has gradually been moved out of the radio network into the edge.
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