The invention is a method of transmitting a radio signal using a complex envelope elimination and restoration technique. The method includes receiving a radio frequency (RF) signal. Further, the method includes separating the RF signal into an in-phase baseband signal (I) and a quadrature baseband signal (Q). Still further, the method includes decomposing the (I) signal into a in-phase magnitude component and a in-phase phase component while decomposing the Q signal into a quadrature magnitude component and a quadrature phase component. Alternatively, the source signal could be digital baseband information. Digital signal processing could generate the phase and magnitude reference signals for the system.