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This format is used to compress TIFF images when sending them via fax machines. This format helps reduce the data transmission time. Group 3 eliminates redundant data during compression in order to reduce file size. The standard 10:1 compression ratio may be increased to the user's preferences, but it can lead to a significant loss of image quality.

This format was created by Nokia for use in its proprietary phones. A bitmap image was used to transfer image files between devices over a wireless connection. It was mainly used when exchanging multimedia text messages that support inserting pictures.