Abstract: A bit compression multiplexer for a pair of time division multiplexed digital bit streams each one of which includes a plurality of PCM encoded signals deposited in separate and distinct channels and signaling bits multiplexed therewith. The encoded signals are bit compressed (22), and then multiplexed and grouped (25) into clusters. Each of the multiplexed compressed signals occupies a separate and distinct channel of a repetitive frame that includes a plurality of clusters and a corresponding number of additional channels, called delta channels, each one of which is associated with a given cluster and is proximate thereto. The signaling bits are extracted (21) from the pair of digital bit streams, reformatted (24) and then placed in predetermined bit positions of the delta channels. The signaling bits in a given delta channel are associated with the compressed signals of a cluster proximate thereto. The combination of a cluster and its related delta channel comprise a bundle.