Abstract: This paper seeks to present ways to eliminate the inherent quantization noise component in digital communications, instead of conventionally making it minimal. It deals with a new concept of signaling called the Signal Code Modulation (SCM) Technique. The primary analog signal is represented by: a sample, which is quantized and encoded digitally, and an analog component, which is a function of the quantization component of the digital sample. The advantages of such a system are two sided offering advantages of both analog and digital signaling. The presence of the analog residual allows for the system performance to improve when excess channel SNR is available. The digital component provides increased SNR and makes it possible for coding to be employed to achieve near error-free transmission.

Keywords: Quantization, QAM, SCM, PAM, bandwidth, SNR.