The development of a new 4800 bit/s data modem, based on real-time digital signal processing by program controlled microprocessors, is described. The modem is fully compatible with the CCITT Recommendations V.27 bis and V.27 ter. In the microprocessor modem, all the digital signals are processed by one general purpose microprocessor unit only and no hardware multiplier is employed. A series of processing cycle reduction tactics have allowed an off-the-shelf microprocessor to handle all the modem functions in a real-time environment. Particularly noteworthy, among these tactics, is the use of a decision feedback equalization algorithm. Numbers of multiplications, which are required for a conventional linear equalization, are shown to be obviated with the DFE algorithm. It is also shown that the DFE facilitates a certain timing phase control method. The microprocessor modem is extremely flexible because of its software controlled nature, and through programming it will provide a variety of additional functions.