This document discusses file compression. It defines file compression as a data compression method that reduces the original size of a file to save disk space and enable faster transmission. File compression can impact data transfer speed, security, server disk space, energy conservation and server requirements on the internet. Compression is classified as either lossy or lossless, where lossy reduces bits by removing unnecessary information and lossless reduces bits by eliminating redundancy. The document outlines the file compression process and how to calculate compression ratios. It notes the advantages of compressed files taking up less space and allowing more efficient transfers, while the disadvantage is the time required for compression.