Demodulation is the act of extracting the original information-bearing signal from a modulated carrier wave. A demodulator is an electronic circuit (or computer program in a software-defined radio) that is used to recover the information content from the modulated carrier wave.
These terms are traditionally used in connection with radio receivers, but many other systems use many kinds of demodulators. Another common one is in a modem, which is a contraction of the terms modulator/demodulator.
Read more about Demodulation: History, Techniques, AM Radio, FM Radio, QAM
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