Abstract: A reliable downhole acoustic telemetry system with increased data rate is disclosed. In one embodiment, the telemetry system includes a receiver having an envelope-detection demodulator and a multipulse-block distance detector that compares a baseband envelope signal to stored waveforms and indicates for each symbol interval the multipulse block having the waveform closest to the baseband envelope signal. The receiver may also include a timing recovery module that models the baseband envelope signal for the detected multipulse blocks and determines a distance for early-sampling and late-sampling of the baseband envelope signal. The timing recovery module then provides a sampling clock that minimizes the average difference between the early- and late-sampling distances. The telemetry system may further include a transmitter having an encoder and a modulator. The encoder converts a data signal into a sequence of multipulse blocks having a settling interval between the blocks.