In telecommunication, trellis modulation (also known as trellis coded modulation, or simply TCM) is a modulation scheme that transmits information with high efficiency over band-limited channels such as telephone lines. Gottfried Ungerboeck invented trellis modulation while working for IBM in the 1970s, and first described it in a conference paper in 1976. It went largely unnoticed, however, until he published a new, detailed exposition in 1982 that achieved sudden and widespread recognition.

In the late 1980s, modems operating over plain old telephone service (POTS) typically achieved 9.6 kbit/s by employing four bits per symbol QAM modulation at 2,400 baud (symbols/second). This bit rate ceiling existed despite the best efforts of many researchers, and some engineers predicted that without a major upgrade of the public phone infrastructure, the maximum achievable rate for a POTS modem might be 14 kbit/s for two-way communication (3,429 baud × 4 bits/symbol, using QAM).

14 kbit/s is only 40% of the theoretical maximum bit rate predicted by Shannon's theorem for POTS lines (approximately 35 kbit/s). Ungerboeck's theories demonstrated that there was considerable untapped potential in the system, and by applying the concept to new modem standards, speed rapidly increased to 14.4, 28.8 and ultimately 33.6 kbit/s.