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Image compression has received a lot of interest over the years. Almost all the compression algorithms and standards, discussed in literature, gather statistics and compress on the complete image and compresses to suit various requirements such as lossy / lossless, baseline/ progressive, spatial, region on interest. Natural images such as gray scale images and color images are best compressed in the existing literature based on the local and global properties such as attributes of constituent pixels of the given image. In this paper, it is proposed to quantize the amplitudes of pixel values to form a number of bit planes and these bit planes are transmitted in either lossy, lossless, progressive manner. Bit plane formation is attempted from the image acquiring stage to compress and then to transmission stage. Results obtained are promising and give rise to new method or ideology in image sensing, acquiring, storage and transmission.