Abstract: Methods and apparatus are provided for processing communication traffic that includes a plurality of traffic units, each traffic unit having a header and a payload. In one embodiment, header compression is selectively applied to headers of traffic units from the communication traffic, and bit-level bulk data compression is selectively applied to the communication traffic. The bit-level bulk data compression involves accumulating blocks of bits, including headers and payloads of traffic units from the communication traffic, and operating on each block individually. In another embodiment, bit-level bulk data decompression is selectively applied to the communication traffic, and header decompression is selectively applied to headers of traffic units from the communication traffic. The bit-level bulk data decompression involves accumulating blocks of bits, including headers and payloads of traffic units from the communication traffic, and operating on each block individually.