WAVELETS AND NOISE CANCELLATION IN MOBILE COMMUNICATION Niclas Svensson Matematisk Statistik, Lunds Universitet Mobile communication is often disturbed by various kinds of noise. This noise arises in many different environments, for example humming from the road or the car engine. This noise may be very annoying for the receiver and even make communication impossible. Furthermore, speech coders are dependent on a ``pure'' speech signal and performance may be very poor if the speech is contaminated with noise. The need for efficient noise reduction algorithms is therefore apparent. In this thesis the discrete wavelet transform and its relatives, the wavelet packet and the cosine packet transforms, are applied to the noise reduction problem. Mobile communication as a real time application imposes constraints on available computing power and limitation in data length. The limitations in data lengths introduces edge effects and this problem have been solved by using overlapping triangular windows. The wavelet packet transform requires O(nlog(n) computations which make it computationally feasible. The transforms have been applied, together with standard denoising algorithms, on speech signals affected by Gaussian white noise and proved useful. When the disturbance was coloured noise two approaches were tried 1. linear modeling of the coloured noise with stable ARMA-models, 2. adopting thresholds according to an estimated wavelet-packet spectrum. The first approach produced discouraging results, ruling it out as a feasible solution, whereas the second indicated performance comparable to common methods, i.e. spectral subtraction.