The document presents a novel image encryption-then-compression (ETC) system that enables efficient compression of encrypted images, addressing the limitations of existing compression-then-encryption (CTE) methods. It emphasizes a secure image encryption scheme operating in the prediction error domain and a context-adaptive arithmetic coding approach for compression, which achieves near-optimal efficiency compared to state-of-the-art coders. The proposed system is designed to accommodate hardware and software requirements, with a focus on resource-efficient processing for mobile users.