A transcoder is used to mix different codecs. If you had a phone and a MOH server that were configured to communicate using g.729 and if the MOH server was configured to support g.729, no transcoder would be necessary. If the MOH server was configured to support only g.711 and the phone and the server were in regions set to use g.729, you would need a transcoder.
If you are using call manager you can go to the Cisco IP Voice Media Streaming App service configuration page and add the aditional codecs you need, so that you can avoid transcoding. You have the option to stream both g.711 and g.729 codecs from your MOH source.
In call manager
Select Service > Service Parameters and choose Cisco IP Voice Media Streaming App from the Service pull down menu
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