A method for encoding, transmitting, and receiving signals utilizes adaptive wavelet packet trees. A transmitter accepts a binary data stream assumed to be random. At the transmitter the data is parsed from a serial bit stream into several parallel streams. Within each of the parallel bit streams symbols are formed from the bits. Signals are created from each symbol by up-sampling. These signals modulate low-pass and high-pass filters that are derived from a wavelet packet transform (the wavelet and scaling functions, or, equivalently the low-pass and high-pass analysis filters). The filters are paired—one high-pass with one low-pass. The steps recited above are recursively repeated log2 N times for a signal of length N. The resulting signal is transmitted to the receiver. At the receiver, the steps recited above are reversed at the receiver to recover symbols, with the up-sampled signal down-sampled to remove inserted zeroes.
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