Abstract: A sub-rate modulation method that is compatible with full-rate ADSL modems. The method may be used to implement a reduced complexity transceiver, preferably remotely located from the central office or service provider. The method includes instructing the full-rate modem to transmit data using a subset of available carriers; receiving the subset of carriers at the remote location; and performing a reduced complexity time-to-frequency domain transform. The full rate modem is instructed to use every other carrier, resulting in a transmitted time domain sequence that is cyclic—the first half of the symbol is identical to the second half. As a result, the first half of the symbol is treated as an extended cyclic prefix by the sub-rate ADSL modem, resulting in the elimination of the need to perform time-domain equalization at the sub-rate ADSL modem receiver. This substantially reduces the amount of signal processing required by the sub-rate ADSL transceiver.