Testing of high-speed voiceband modems has revealed a significant incr
ease in distortion for points near the perimeter of a QAM signal const
ellation. This distortion increases with distance from the center of t
he constellation and limits performance at data rates above 19.2 kb /
s. The perimeter distortion can be reduced by transforming the signal
constellation so that points near the center are closer together, and
points near the perimeter are further apart. When the channel SNR is h
igh,;such a transformation reduces immunity to Gaussian noise because
points near the center of the transformed constellation are closer tog
ether than in a uniformly spaced constellation with the same average p
ower. This paper demonstrates theoretically that for channel SNR's of
practical interest, there is actually a small gain in immunity to Gaus
sian noise. In fact, an appropriate coded modulation scheme can produc
e gains of about 0.25 dB.