Abstract: A system and method to enable compressed information to be transferred over a tandem connection. Briefly stated, the method features detection of a tandem connection separating a first node and a second node. These nodes are attached to a networking device of the tandem connection via a first signal line and a second signal line, respectively. Upon detection, encoded information is exchanged through the tandem connection in order to identify a first rate of transmission and a first compression function supported by the first signal line and a second rate of transmission and a second compression function supported by the second signal line. If the first rate of transmission and the first compression function are equivalent to the second rate of transmission and the second compression function, the information in a compressed format is transferred through the tandem connection.