A significant improvement in noise immunity can be achieved for digital transmission over band-limited channels by the use of multidimensional signal constellations. Conventional 16-point QAM signaling, such as that used in many digital transmission systems, is a two-dimensional modulation scheme where in each signaling interval a group of

bits is used to determine the amplitudes of the in-phase and quadrature dimension or coordinate, i.e.,

bits are conveyed per dimension. In a

-dimensional QAM system, a group of

bits is used to determine the in-phase and quadrature ampllitudes for

consecutive, symbol intervals where

bits are still conveyed by each dimension. It is the purpose of this paper to describe the basic theory and implementation for a particular 2 bits/dimension four-dimensional (two-symbol interval) encoding which readily lends itself to simple encoding and decoding. For this encoding, theory predicts a 1.2 dB gain in noise margin over conventional 16-point (two-dimensional) QAM signaling. Experimental results agreed with the theoretical predictions, and have demonstrated an order of magnitude reduction in block error rate. Extension to eight-dimensional signaling offers a theoretical gain of 2.4 dB over conventional 16-point QAM.