Some points here...
1.> LiteSpeed is a Apache drop-in replacement - anything that works with Apache should work with LiteSpeed - with the same setup
2.> If you use PHP and view var - $_SERVER['HTTP_ACCEPT_ENCODING'] - you will see --> gzip,deflate,sdch - which tells you "gzip" is already setup on your free-hosting server
3.> When you look at the 'Response header' after loading a page in your browser from your x10hosting's free-hosting server - you will see...
Code:
Date: Sun, 02 Feb 2014 18:07:17 GMT
Content-Encoding: gzip
Server: LiteSpeed
X-Powered-By: PHP/5.4.17
Vary: Accept-Encoding
Content-Type: text/html
Connection: close
Content-Length: 707
200 OK
4.> why do you think you need to install gzip ? - do you receive errors ?