PCT No. PCT/SE96/00128 Sec. 371 Date Aug. 4, 1997 Sec. 102(e) Date Aug. 4, 1997 PCT Filed Feb. 2, 1996 PCT Pub. No. WO96/24926 PCT Pub. Date Aug. 15, 1996A speech encoder (100) receives speech signals (S) which are encoded and transmitted on a communication channel (120). Silence in the speech is utilized by a data encoder (101) to transmit data on the speech frequency band via the channel (120). A signal classifier (103) switches between the encoders (100, 101). The speech encoder has synthesis filter (115) with state variables in a delay line, predictor adaptor (116), gain predictor (113, 114) and excitation codebook (112). The data encoder (101) has delay line with state variables stored and updated in a buffer (192). On switching (103, 102, 193) from data to speech, the buffer state variables are fed into the synthesis filter delay line via an input (144) for smooth transition in the speech encoding. Coefficient values in the synthesis filter (115) and an excitation signal (ET(1 . . . 5)) are generated. Thereby a buffer in the gain predictor (113, 114) is preset and its predictor coefficients and gain are generated. The incoming speech signal (S) newly detected is encoded (CW) by the values generated in the speech encoder (100), which is successively adapted. The receiver side has corresponding speech and data decoders.