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Based on the standard of digital audio broadcasting (DAB) Eureka 147 system to improve structures of transmitter/receiver, this paper proposes a physical layer transmission technique capable of boosting the spectrum efficiency up to two times of that of the DAB-Eureka 147 system while the backwards compatibility is guaranteed. The proposed transmission technique comprises the development of both the modulation and demodulation schemes. In the developed modulation scheme, differential 16-level amplitude/ phase shift keying (D16 APSK) is adopted to replace the differential quadrature-phase-shift-keying (DQPSK) used in the DAB Eureka 147 system. In the developed demodulation scheme, on the other hand, a detector for two-level differential amplitude-shift-keying (DASK) signal is proposed which can be implemented with rather low hardware costs. The performance is presented by the Simulink platform in multipath fading channel model.