The document discusses Differential Pulse Code Modulation (DPCM), which addresses the redundancy in Pulse Code Modulation (PCM) by encoding the difference between actual and predicted sample values to reduce bit rate. It explains the advantages of DPCM over PCM, including its ability to handle highly correlated samples more efficiently. Additionally, it introduces Adaptive Differential Pulse-Code Modulation (ADPCM), a variant that further optimizes bandwidth by varying the quantization step size.