A unique digital compression technology for increasing the information carrying capacity of a bandwidth limited communications path highway by using a combined coding and modulation technique. The inventive technology allows multiple independent modulated data streams to simultaneously and instantaneously share the same bandwidth without cross-channel interference. A matched filter is used to substantially reduce the error rate and utilizes a unique training method based on performing a spectral response test. An algorithm calculates the effect of the unique characteristics of the communications highway on the transmitted signal and generates an ideal signal stored in the matched filter for comparison with received signals.