> I'm not sure what you mean by "still doesn't compress the data"?

Yes I used transcoding as the wrong term when I mean compressed to g729.
I've never had to deal with codecs yet so am learning about it right now.
 
> If you set 2 remote endpoints that prefer the G.729 codec, then when they
> call each other, the G.729 codec will be used which is a compressed codec.

I thought the device itself or the switch in the middle would require the 
licensing to compress calls to g729.

Meaning, even if a device is set to use g729 but doesn't itself have a license 
or if the switch it is connecting to doesn't then the call would end up being 
what ever the devices could agree on after that, typically g711.


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