I'm not sure about all the details (compression, encoding, etc.), but I usually just use WireShark to analyze network traffic (when trying various methods), which then allows you to see exactly how it is sent.
For example, if it compressed a packet data block, it cannot be read as plain text ... however, if it is uncompressed, you will see plain old xml text ... as you would see with HTTP traffic, or even FTP in some cases.
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