A system uses multi-level encoding where each symbol of a plurality of symbols represents more than one bit of information in a user data symbol stream for transfer using a multilevel transmission channel. The user data symbols are represented in a digital bitwise form such that each symbol is presented as a plurality of bits and each bit is subject to a different probability of error. An error correction procedure is applied based on the different error probability that is associated with each bit in the plurality. The channel can be configured to support a mosaic tile structure, each tile containing a channel symbol such that a selected tile has a collective error probability that is different from other tiles. Customized coding can be applied to the tile structure to allocate a selected amount of error correction power to the selected tile based on an overall available correction power.