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TIFO axspawn (the linux utility to handle incoming AX.25 connections) has a built-in inline compression feature (your client needs to send "//COMP ON\n" once the LAPB bearer is established. Axspawn then sends "\rCOMP 1\r" and turns on huffman compression).

sources.debian.org/src/ax25-to…

in reply to isithran

The only software, to my knowledge, able to turn on such compression is TNT ( home.snafu.de/wahlm/tntdoc.htm… ).

Some TNC may be able to handle it on the fly, but I've not tried it.