This paper deals with 2/sup l/-ary transmission using multilevel coding (MLC) and multistage decoding (MSD). The known result that MLC and MSD suffice to approach capacity if the rates at each level are appropriately chosen is reviewed. Using multiuser information theory, it is shown that there is a large space of rate combinations such that MLC and full maximum-likelihood decoding (MLD) can approach capacity. It is noted that multilevel codes designed according to the traditional balanced distance rule tend to fall in the latter category and, therefore, require the huge complexity of MLD. The capacity rule, the balanced distances rules, and two other rules based on the random coding exponent and cutoff rate are compared and contrasted for practical design. Simulation results using multilevel binary turbo codes show that capacity can in fact be closely approached at high bandwidth efficiencies. Moreover, topics relevant in practical applications such as signal set labeling, dimensionality of the constituent constellation, and hard-decision decoding are emphasized. Bit interleaved coded modulation, proposed by Caire et al. (see ibid., vol.44, p.927-46, 1998), is reviewed in the context of MLC. Finally, the combination of signal shaping and coding is discussed. Significant shaping gains are achievable in practice only if these design rules are taken into account.
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