Abstract: Disclosed is a quantizer that uses optimum decision thresholds that are determined by the average of the optimum reconstruction levels of a detected signal in the presence of noise. The Lloyd-Max Quantizer is used to determine the optimum reconstruction levels yK using a minimum means squared error technique. Decision thresholds xK are therefore established at levels where influences of noise or other distortions are equally likely to occur between adjacent transmitted points. The present invention can be utilized in quadrature amplitude modulation (QAM) systems or any quantizer design that quantizes an analog signal.