A system for transmitting data packets representing a source signal across a packet data network is provided. Additionally provided are methods and an apparatus for encoding parameters representing the source signal and also decoding these parameters. The system allows adaptation to the loss scenario of data packets transmitted across the packet data network. A redundancy encoding is generated with a bit rate continuously scalable, the bit rate being provided by a bit rate controller that uses input from the network and packet-loss rate information. The specification can be changed for each coding block. At the decoder, recovery is performed by a parameter estimator based on a dynamically generated statistical model of the effect of the quantizers. The method may be added to existing lossy source coding systems or may be used to enhance the quality of the reconstructed source signal even in scenarios without packet loss.