A signal compression method and apparatus for a base transceiver system (BTS) in a wireless communication network provides efficient transfer of compressed signal samples over serial data links in the system. For the uplink, an RF unit of the BTS compresses signal samples resulting from analog to digital conversion of an analog signal received via an antenna. The RF unit transfers the compressed signal samples over the serial data link to the base station processor where they are decompressed prior to the normal signal processing operations. For the downlink, the base station processor compresses signal samples and transfers the compressed signal samples over the serial data link to the RF unit. The RF unit decompresses the compressed samples and converts the decompressed samples to an analog signal for transmission over an antenna. Compression and decompression can be incorporated into operations of conventional base stations and distributed antenna systems.