Abstract: This paper proposes a "Network Conscious Text Compression System" (NCTCSys) to tackle the problem of transmitting explosively increasing data on the internet. It can be integrated into different text based transfer protocols like FTP, HTTP, and SMTP at application level to handle text data transmission. We apply newly developed LIPT [1] encoding method along with BZIP2 and GZIP to compress text. NCTCSys selection algorithm makes the decision of choosing the best compression method. To share a common encoding/decoding dictionary between the client and the server we use Dictionary Management Protocol. In a typical congestion and fluctuating scenario of bandwidth using the above method we have reduced transmission times by 60.24% using LIPT+GZIP, by 85.20% using LIPT+BZIP2.