The paper highlights the role of the latest developments of Digital Si
gnal Processing nd VLSI technologies in the design of the new families
of microwave radio communication systems. Implementation of innovativ
e solutions, that have become affordable thanks to the availability of
ASICs with operating frequency up to about 100 MHz and some hundred t
housand gates in a single chip, are here presented and discussed toget
her with the relevant application. Among them, particular emphasis is
given to Frequency Reuse, Coded Modulation and Signal Combiners. The i
ntroduction of Coded Modulation in US SONET low capacity radios is sho
wn to represent a straightforward solution to meet the stringent FCC r
equirements, in terms of spectrum efficiency and system gain, at compe
titive cost.