To provide a voice companding system with echo canceller that reduces an arithmetic quantity when the input signal is a silence signal.

The voice companding system with echo canceller is provided with a 1st voice silence decision section (VAD) 3 that decides voice/silence of an input voice signal, a decoder 7 that expands a signal received from a line, an echo canceller 4 that references an output signal of the decoder 7 so as to eliminate an echo from the voice signal decided by the VAD 3, a 2nd voice silence decision section (VAD) 5 that decides voice/silence of the signal after the eco is eliminated, and an encoder 6 that receives an output of the VAD 5 and the signal decided to be a silent signal by the VAD 3 to compress the signal. The encoder 6 applies silence compression to the signal decided as a silent signal and applies voiced compression processing to the signal decided to be a voiced signal.