In this paper, a novel channel-optimized multistage vector quantization (COMSVQ) codec is presented in which the stage codebooks are jointly designed. The proposed codec uses a signal source and channel-dependent distortion measure to encode line spectral frequencies derived from segments of a speech signal. Simulation results are provided to demonstrate the consistent reduction in the spectral distortion obtained using the proposed codec as compared to the conventional sequentially-designed channel-matched multistage vector quantizer.