In the case of baseband level modulation, the original signals are not converted or shifted to significantly higher frequencies. This is the main difference between baseband modulation and modulation techniques which are applied in a basic communication system before transmitting the modulated signal.
The signal occupies the lower end of the frequency spectrum, close to DC (0 Hz). Noise at these frequencies (such as 1/f noise or flicker noise) can significantly impact the signal.
The filtering of baseband signals is often limited by the need to preserve the low-frequency components of the signal. This makes it difficult to filter out low-frequency noise effectively.
Disadvantages
In a noisy environment, the SNR at baseband frequencies can be relatively low because the noise power is often higher at lower frequencies.
Baseband signals are more susceptible to multipath fading and interference. In wireless communication, signals can reflect off surfaces, causing constructive and destructive interference. Baseband signals can suffer significantly from these effects.
Basic modulation techniques, i.e., amplitude modulation (AM), frequency modulation (FM), phase modulation (PM), etc., are applied to baseband modulation.