A cable modem system and method are provided for using a data compression dictionary to transmit compressed payload data in a DOCSIS network while utilizing conventional cable modem termination system (CMTS) equipment. A cable modem system in accordance with the invention includes a cable modem and a CMTS adapted to send and receive compressed payload data. In one example, the cable modem is adapted to compress PDU payload data using a data compression dictionary and the CMTS is adapted to reconstruct the compressed PDU payload data that is received from the cable modem.