A numerically controlled oscillator (NCO) is a digital signal generator which creates a synchronous (i.e. clocked), discrete-time, discrete-valued representation of a waveform, usually sinusoidal. NCOs are often used in conjunction with a digital-to-analog converter (DAC) at the output to create a direct digital synthesizer (DDS).
Numerically controlled oscillators offer several advantages over other types of oscillators in terms of agility, accuracy, stability and reliability. NCOs are used in many communications systems including digital up/down converters used in 3G wireless and software radio systems, digital PLLs, radar systems, drivers for optical or acoustic transmissions, and multilevel FSK/PSK modulators/demodulators.
Read more about Numerically Controlled Oscillator: Operation, Phase Accumulator, Phase-to-amplitude Converter, Spurious Products
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