1. A signal compression system for processing an input signal to provide an output of a compressed input signal, said system comprising: means for dividing the input signal into a plurality of time windows comprising at least N=128 sample points; means for sampling each said window at a plurality of points N at a defined sampling frequency to provide first N level 1 sampling points; means for deriving AR (autoregressive) model level 1 parameters including signal power value responsive to the N level 1 sample points; means for selecting every other one of the first N level 1 sample points to provide an output of level 1 of N/2 level 2 sample points; means for deriving AR level 2 parameters responsive to the N/2 level 2 sample points, which is output from the previous level; sampling means for selecting every other one of the sample points for level m where m equals an integer from 2 to M, where M is an integer, to provide N/2.sup.m level m+1 sample points; deriving means for deriving AR model level m+1 parameters for N/2.sup.m level m+1 sample points which is output from level m; means for determining the value of m relative to the value of M; wherein for m&gt;M, the value of m is incremented and the sampling means and the deriving means both function responsive to said incremented value of m, and reiterating for all values of m less than M; wherein where m=M, the system is further comprised of: means for selecting every other one of the level m sample points to provide N/2.sup.m level m+1 sample points; means for combining the N/2.sup.m level m+1 sample points with the AR parameters of levels 1, 2,. .. M to correspondingly provide the compressed signal output; and means for transmitting the AR parameters of levels 1 to M plus the sample points of level M including the signal power value of each such level.