Modulation
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Modulation is defined as the process by which some characteristics like amplitude, frequency, and phase of a carrier signal are varied in accordance with a modulating wave.
Waterfall plot of a 146.52 MHz radio carrier, with amplitude modulation by a 1,000 Hz sinusoid. Two strong sidebands at + and - 1 kHz from the carrier frequency are shown.
A carrier, frequency modulated by a 1,000 Hz sinusoid. The modulation index has been adjusted to around 2.4, so the carrier frequency has small amplitude. Several strong sidebands are apparent; in principle an infinite number are produced in FM but the higher-order sidebands are of negligible magnitude.
Digital signal
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A digital signal is a signal that represents data as a sequence of discrete values; at any given time it can only take on, at most, one of a finite number of values. This contrasts with an analog signal, which represents continuous values; at any given time it represents a real number within a continuous range of values.
A frequency-shift keying (FSK) signal is alternating between two waveforms and allows passband transmission. It is considered a means of digital data transmission.