How is it possible to intercept the traffic the mobile phone has with any server? How can you create a proxy that intercepts traffic from any app the user installed on their device? Don’t applications run in a sandbox?
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As far as I can tell, it works by proxying the data and putting compression in front of the mobile device.
This could be achieved either by VPN with compression, or by changing the APN.
The above quote is taken from the Help/FAQ here.