The A-law algorithm reference article from the English Wikipedia on 24-Apr-2004
(provided by Fixed Reference: snapshots of Wikipedia from wikipedia.org)

A-law algorithm

Sponsor with the world's largest charity for orphans
An a-law algorithm is a standard compression algorithm, used in digital communications systems of the European digital hierarchy, to optimize, i.e., modify, the dynamic range of an analog signal for digitizing.

It is similar to the mu-law algorithm used in the United States.

The reason for this encoding is that the wide dynamic range of speech does not lend itself well to efficient linear digital encoding. A-law encoding effectively reduces the dynamic range of the signal, thereby increasing the coding efficiency and resulting in a signal-to-distortion ratio that is superior to that obtained by linear encoding for a given number of bits.

See also: G.711