Multiplexing allows multiple transmission sources to share a larger transmission capacity through techniques like frequency division multiplexing (FDM) and time division multiplexing (TDM). FDM allocates different carrier frequencies to different signals so they do not overlap. TDM interleaves multiple digital signals in time by assigning fixed time slots. Statistical TDM dynamically allocates time slots based on demand to make more efficient use of bandwidth compared to synchronous TDM which allocates slots even if they are empty.