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The effective signal-to-noise and distortion ratio (SNDR) at the output of a nonlinear amplifier is defined through the decomposition of the nonlinear output into correlated output and uncorrelated distortion. The analysis is based on the orthogonalisation of the nonlinear behavioual model that allows the accurate estimation of the effective in-band (or co-channel) distortion and hence determination of SNDR. Fundamental issues regarding the evaluation of the effective in-band distortion and its effect on digitally modulated signals are discussed. Simulations of in-band distortion and SNDR of WCDMA signals are verified experimentally using feed-forward cancelation.