Modulation varies parameters of a carrier signal to transmit a message signal. Pulse code modulation (PCM) converts analog signals to digital by sampling, quantizing, and encoding amplitude levels. PCM transmits a series of numbers representing signal amplitudes. The transmitter samples, quantizes, and encodes the signal, while the receiver decodes and reconstructs the original analog signal. PCM is used for digital communication networks and applications like telephony and compact discs.