Thanks Brendan for the explanation.  There is one other idea that struck me, 
but again, I don't know if it has any merit.  My thinking is to keep FAX as FAX 
and electronic as electronic, rather than introducing a new hybrid approach.  
Obviously Entering FAX from an electronic source is as old as the FAX modem, 
and Exiting it electronically is as old as E-FAX, not to mention other 
alternatives.

Is it feasible to simply specify the codec as ulaw or alaw (depending on 
jurisdiction, I forgot the g numbers) for calls originating from the FXS or 
whatever the FAX is coming from?  Obviously, the bandwidth would be higher in 
that case, but you can't get around the laws of physics.  Yes it is lossy 
compression, still, but it is the simple, predictable form of lossy compression 
that the modem in every FAX machine already is programmed to cope with.  The 
only problems I can see would be if the provider who handles the call refuses 
to accept that codec, or transcodes it to something else.  I don't know the 
likelihood of either of these.

Wilton
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