The demand for bandwidth has increased with the advent of high definition television and broadband internet accessibility all over the world. But even though the available bandwidth is sparse, studies have shown that the significant portion of the spectrum allocated to licensed services show little usage over time. Hence, to meet the ever increasing bandwidth requirements there is a need for designing communication systems that efficiently uses the available spectrum. This thesis focuses on the methodology, design and implementation of a communication system called as interpolated tree orthogonal multiplexing (ITOM). This frequency division multiplexed (FDM) channelization scheme produces transmission signals with attractive characteristics regarding time and frequency localization which can efficiently use the available bandwidth. The ITOM tree based structure consists of shaping filters that delivers shaped signals to an interpolation tree consisting of half band filters. All filters are based on low-pass prototypes centered at multiples of the quarter sample rate. The Thesis also discusses other multichannel formation schemes like discrete wavelet transform (DWT) and orthogonal frequency division multiplexing (OFDM) and compares these two techniques with ITOM, based on the channels formed by each of these schemes. All the filters involved has been modeled and simulated in MATLAB to demonstrate the results.