Data (mainly but not exclusively informational) has been sent via non-electronic (e.g. optical, acoustic, mechanical) means since the advent of communication. Analog signal data has been sent electronically since the advent of the telephone. However, the first data electromagnetic transmission applications in modern time were telegraphy (1809) and teletypewriters (1906), which are both digital signals. The fundamental theoretical work in data transmission and information theory by Harry Nyquist, Ralph Hartley, Claude Shannon and others during the early 20th century, was done with these applications in mind.

Data transmission is utilized in computers in computer buses and for communication with peripheral equipment via parallel ports and serial ports such as RS-232 (1969), Firewire (1995) and USB (1996). The principles of data transmission are also utilized in storage media for Error detection and correction since 1951.

Data transmission is utilized in computer networking equipment such as modems (1940), local area networks (LAN) adapters (1964), repeaters, repeater hubs, microwave links, wireless network access points (1997), etc.

In telephone networks, digital communication is utilized for transferring many phone calls over the same copper cable or fiber cable by means of Pulse code modulation (PCM), i.e. sampling and digitization, in combination with Time division multiplexing (TDM) (1962). Telephone exchanges have become digital and software controlled, facilitating many value added services. For example, the first AXE telephone exchange was presented in 1976. Since the late 1980s, digital communication to the end user has been possible using Integrated Services Digital Network (ISDN) services. Since the end of the 1990s, broadband access techniques such as ADSL, Cable modems, fiber-to-the-building (FTTB) and fiber-to-the-home (FTTH) have become widespread to small offices and homes. The current tendency is to replace traditional telecommunication services by packet mode communication such as IP telephony và IPTV.

Transmitting analog signals digitally allows for greater signal processing capability. The ability to process a communications signal means that errors caused by random processes can be detected and corrected. Digital signals can also be sampled instead of continuously monitored. The multiplexing of multiple digital signals is much simpler to the multiplexing of analog signals.

Because of all these advantages, and because recent advances in wideband communication channels and solid-state electronics have allowed scientists to fully realize these advantages, digital communications has grown quickly. Digital communications is quickly edging out analog communication because of the vast demand to transmit computer data and the ability of digital communications to do so.

The digital revolution has also resulted in many digital telecommunication applications where the principles of data transmission are applied. Examples are second-generation (1991) and later cellular telephony, video conferencing, digital TV (1998), digital radio (1999), telemetry, etc.

Data transmission, digital transmission or digital communications is the physical transfer of data (a digital bit stream or a digitized analog signal[1]) over a point-to-point or point-to-multipoint communication channel. Examples of such channels are copper wires, optical fibers, wireless communication channels, storage media and computer buses. The data are represented as an electromagnetic signal, such as an electrical voltage, radiowave, microwave, or infrared signal.

While analog transmission is the transfer of a continuously varying analog signal over an analog channel, digital communications is the transfer of discrete messages over a digital or an analog channel. The messages are either represented by a sequence of pulses by means of a line code (baseband transmission), or by a limited set of continuously varying wave forms (passband transmission), using a digital modulation method. The passband modulation and corresponding demodulation (also known as detection) is carried out by modem equipment. According to the most common definition of digital signal, both baseband and passband signals representing bit-streams are considered as digital transmission, while an alternative definition only considers the baseband signal as digital, and passband transmission of digital data as a form of digital-to-analog conversion.

Data transmitted may be digital messages originating from a data source, for example a computer or a keyboard. It may also be an analog signal such as a phone call or a video signal, digitized into a bit-stream for example using pulse-code modulation (PCM) or more advanced source coding (analog-to-digital conversion and data compression) schemes. This source coding and decoding is carried out by codec equipment.