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Theory and experimental data are given which show the improvements in signal-noise ratio effected by frequency modulation over amplitude modulation. It is shown that above a certain carrier-noise ratio in the frequency modulation receiver which is called the "improvement threshold," the frequency modulation signal-noise ratio is greater than the amplitude modulation signal-noise ratio by a factor equal to the product of a constant and the deviation ratio (the deviation ratio is equal to the ratio between the maximum frequency deviation and the audio modulation band width). The constant depends upon the type of noise, being slightly greater for impulse than for fluctuation noise. In frequency modulation systems with high deviation ratios, a higher carrier level is required to reach the improvement threshold than is required in systems with low deviation ratios; this carrier level is higher for impulse than for fluctuation noise. At carrier-noise ratios below the improvement threshold, the peak signal-noise ratio characteristics of the frequency modulation receiver are approximately the same as those of the amplitude modulation receiver, but the energy content of the frequency modulation noise is reduced. An effect which is called "frequency limiting" is pointed out in which the peak value of the noise is limited to a value not greater than the peak value of the signal. With impulse noise this phenomenon effects a noise suppression in a manner similar to that in the recent circuits for reducing impulse noise which is stronger than the carrier in amplitude modulation reception.