A method and system for compressing an audio signal. The method includes receiving a segment of an audio signal and selectively disabling noise suppression for the received segment. The segment is filtered in a noise-suppression module if noise suppression is not disabled. The method also includes calculating an autocorrelation coefficient and an LSP coefficient, predicting a short-term coefficient and long-term coefficients according to the LSP coefficient and calculating one or more bandwidth-expanded correlation coefficients. Further, the method includes determining the type of packet in which to encode the segment. An encoding rate is selected from among a full rate encode, a half-rate encode, and an eight-rate encode if noise suppression is not disabled. An encoding rate is selected from among a full rate encode and a half-rate encode if noise suppression is disabled. Furthermore, the segment is formed into a packet of the determined type and selected rate.