In an apparatus and method, time-varying signals are processed and encoded via a frequency domain linear prediction (FDLP) scheme to arrive at an all-pole model. Residual signals resulted from the scheme are estimated and transformed into a time domain signal. Through the process of heterodyning, the time domain signal is frequency shifted toward the baseband level as a downshifted carrier signal. Quantized values of the all-pole model and the frequency transform of the downshifted carrier signal are packetized as encoded signals suitable for transmission or storage. To reconstruct the time-varying signals, the encoded signals are decoded. The decoding process is basically the reverse of the encoding process.