Abstract: A method of, and apparatus for, slicing a modulated input signal is disclosed. The method comprises: generating at least one slice threshold level (20); comparing (3) the magnitude of the input signal (1) with the at least one threshold level to produce a corresponding sliced signal having a first magnitude if the input signal is greater than the threshold level and having a second magnitude if the input signal is less than the threshold level. The method further comprises detecting errors (5) in the sliced signal and producing a corresponding error signal; and setting the threshold level in response to the error signal.