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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 is used to store small personal icons. It is used in website development to create favicons that are displayed in the address bar of the web browser as well as in satellite TV for identifying broadcast channels. It is very similar in structure to a GIF format image.