An exemplary embodiment provides a method for use in a data compression device wherein optimal compression is maintained in response to network characteristics by switching between a first compression mode, including use of a stateful compression algorithm and a reliable transport protocol, to a second compression mode, including a second compression algorithm and an unreliable transport protocol, as needed in order to keep data flowing. In the second compression mode, rather than bypassing an established tunnel between two data compression devices altogether and losing the benefits of compression, this method allows data to be compressed using an algorithm that does not require reliable packet delivery. When a positive change in network conditions is detected, data transmission using the first compression mode resumes.