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The development of space telemetry technology has brought forward the need for large capacity memory of any solid-state recorder; data compression therefore, becomes more and more important. The compression feasibility and potentiality of telemetry data are examined by analyzing the statistical characteristics of actual telemetry data recovered from recorders. Aiming at the disadvantage of present data formats in data compression for multi-channel telemetry data acquisition systems, this introduces a data packet structure, and a real-time compression algorithm for low complex hardware design. The principles and implementations of data package compression are described. Simulation results show that this technology can meet the requirements of multi-channel real-time data compression with a high compression ratio and a fast compression speed, which possesses great application value.