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Amultiplexer is a physical layer device that combines multiple data streams into one or more output channels at the source. Multiplexers demultiplex the channels into multiple data streams at the remote end and thus maximize the use of the bandwidth of the physical medium by enabling it to be shared by multiple traffic sources.

Some methods used for multiplexing data are time-division multiplexing (TDM), asynchronous time-division multiplexing (ATDM), frequency-division multiplexing (FDM), and statistical multiplexing.

In TDM, information from each data channel is allocated bandwidth based on preassigned time slots, regardless of whether there is data to transmit. In ATDM, information from data channels is allocated bandwidth as needed by using dynamically assigned time slots. In FDM, information from each data channel is allocated bandwidth based on the signal frequency of the traffic. In statistical multipl ex ing, bandwidth is dynamically allocated to any data channels that have information to transmit.

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