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Other types of DSL separate voice from data with filters and do permit the use of a POTS line. High-speed modems encode information in symbols instead of a raw bit stream. By using complex coding schemes, a single symbol can be made to represent some number of consecutive bits. As we have discussed, T1/E1 uses a simple coding scheme that encodes only 1 bit per symbol. ISDN improves on that by using 2B1Q line coding. Each pair of bits represents one quaternary signal. Higher modem speeds are achieved with QAM.

Although the revenues from local service are enormous (estimated to be in excess of $70 billion per year in the United States alone), the service is regulated. While profits are all but guaranteed, regulation prevents the ILECs from 49 Copyright © 2002 by The McGraw-Hill Companies, Inc. Click here for Terms of Use. 50 Access Technologies: DSL and Cable achieving the profitability of more exciting industries. About all the ILECs can count on to increase their revenue stream is additional telephone services such as their custom signaling services, which include caller ID and other profitable services.

CAP is closely related to QAM. The data rate is divided in two and modulated onto two orthogonal carriers phaseshifted 90˚ to one another. CAP systems use a combination of amplitude and phase states to encode the data. The two channels are combined, fed into a digital-to-analog converter, and transmitted. A simple filter separates voice and data. Hybrids and echo cancelers are not needed with CAP systems because the two directions of transmission are separate. The Digital Subscriber Line Access Technology 57 modems use adaptive equalization to overcome, to some degree, the effects of bridged tap, gauge changes, and splices.

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