Abstract—Discrete multitone (DMT) modulation is an attractive method for communication over a nonflat channel with possibly colored noise. The uniform discrete Fourier transforn (DFT) filter bank and cosine modulated filter bank have in the past been used in this system because of low complexity. We show in this paper that principal component filter banks (PCFB) which are known to be optimal for data compression and denoising applications, are also optimal for a number of criteria in DMT modulation communication. For example, the PCFB of the effective channel noise power spectrum (noise psd weighted by the inverse of the channel gain) is optimal for DMT modulation in the sense of maximizing bit rate for fixed power and error probabilities. We also establish an optimality property of the PCFB when scalar prefilters and postfilters are used around the channel. The difference between the PCFB and a traditional filter bank such as the brickwall filter bank or DFT filter bank is significant for effective power spectra which depart considerably from monotonicity. The twisted pair channel with its bridged taps, next and fext noises, and AM interference, therefore appears to be a good candidate for the application of a PCFB. This will be demonstrated with the help of numerical results for the case of the ADSL channel. Index Terms—Channel capacity, digital subscriber loops (DSL), discrete multitone (DMT) modulation, frequency division multiplexing (FDM), principal component filter banks (PCFB). I.
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