Advantages of digital transmission:

1. Immunity to transmission noise and interference.
2. Regenerative of the coded signal along the transmission path is possible.
3. Communication can be kept “private” and “secured” through the use of encryption.
4. It is possible to use a uniform format for different kinds of baseband signals.
5. It is possible to store the signal and process it further.
6. Digital signals are better suited for processing and multiplexing
7. Digital transmission systems are more immune to noise
8. Measurement and evaluation of digital signals is simpler.
9. It is possible to evaluate error performance of digital systems.

Disadvantages:

1. The required bandwidth is increased due to digital technology.
2. System Complexity is increased
3. In order to convert the analog signal to digital prior to transmission and then from digital to analog receiver, we need to use the additional encoder and decoder circuit.
4. Synchronization is necessary for digital systems (between transmission and receiver clocks)
5. Digital transmission systems are not compatible to older analog transmission systems.