Abstract: A method and apparatus are disclosed for notifying a far-end calling party when a near-end calling party utilizes a hold or mute feature. The present invention reduces bandwidth utilization by suppressing the transmission of packets during periods of extended silence. Each packet telephony device includes a packet suppression system that monitors local terminal activity and notifies the far-end party that the near-end device is discarding the “listen” stream. In addition, the disclosed packet suppression system monitors the incoming packets and processes such notifications from the far-end party that the far-end device is discarding the “listen” stream. In response, the packet suppression system can suppress the transmission of further packets and optionally activate a music-on-hold feature for the held party.