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A source encoder converts client input to a binary stream. This is typically done by sampling an analog input, digitizing the samples and coding them into a binary stream. A common component that does all this is called a Codec.

A channel encoder converts a binary stream to an analog signal that can be transmitted over distances as tones, radio waves and/or light. The channel encoder can take a number of bits from the bitstream at a time to create a multibit symbol. The symbols can then be converted to an analog signal for transmission. By transmitting symbols that represent multiple bits, more data can be sent without violating the Nyquist criteria. However, the number of bits that can be coded into a symbol is limited by the SNR as in Shannon's law. A common component that does all this is called a Modem.

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Q: What is difference between source encoder and channel encoder?
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