Pulse code modulation (PCM) is a method to convert analog signals to digital signals for transmission. It involves sampling the analog signal, quantizing the samples to discrete levels, and encoding the quantized samples as binary code. At the receiver, PCM demodulation recovers the original analog signal. PCM allows analog signals to be transmitted over digital networks and is used in applications like digital telephony, audio recording, and radio control. Key steps in PCM include sampling the analog signal, quantizing the samples, encoding the quantized samples into binary code using methods like uniform quantization, and decoding and reconstructing the analog signal at the receiver.