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A new variable transfer function is proposed and its application to digital transmission is investigated. The realization of the new variable transfer function is developed for use in a digital transmission automatic line build out (ALBO) network. A simple inductorless ALBO network having ±15 dB variable range is demonstrated for use in 1.544 Mbit/s PCM transmission. Intersymbol interference and jitter increments due to equalization errors are around ten percent and ±2 degrees, respectively.