A method for demodulating the carrier signal of powerline communication networks. The method involves demodulating an HDLC data body that had been modulated through differential phase shift keyed modulation. Under the method, the data body is split with data input into a single bit digital delay circuit which outputs a delayed or "previous" binary data bit. A "present" binary data bit is input to one input of an XNOR circuit and the previous binary data bit is input into a second input of the XNOR circuit. When the present binary data bit and the previous binary data bit have unlike phases the XNOR circuit outputs a first binary data bit value. When the present binary data bit and the previous binary data bit have like phases, the XNOR circuit outputs a second binary data bit value. Preferably, the demodulated data is input into a post detection filter. The demodulation method also preferably involves the step of processing the demodulated data through a receive data correlator, a data body state machine and a variable divide counter.