A communications channel is a pathway over which information can be conveyed. It may be defined by a physical wire that connects communicating devices, or by a radio, laser, or other radiated energy source that has no obvious physical presence. Information sent through a communications channel has a source from which the information originates, and a destination to which the information is delivered. Although information originates from a single source, there may be more than one destination, depending upon how many receive stations are linked to the channel and how much energy the transmitted signal possesses.

In a digital communications channel, the information is represented by individual data bits, which may be encapsulated into multibit message units. A byte, which consists of eight bits, is an example of a message unit that may be conveyed through a digital communications channel. A collection of bytes may itself be grouped into a frame or other higher-level message unit. Such multiple levels of encapsulation facilitate the handling of messages in a complex data communications network.

Any communications channel has a direction associated with it:

The message source is the transmitter, and the destination is the receiver. A channel whose direction of transmission is unchanging is referred to as a simplex channel. For example, a radio station is a simplex channel because it always transmits the signal to its listeners and never allows them to transmit back.A half-duplex channel is a single physical channel in which the direction may be reversed. Messages may flow in two directions, but never at the same time, in a half-duplex system. In a telephone call, one party speaks while the other listens. After a pause, the other party speaks and the first party listens. Speaking simultaneously results in garbled sound that cannot be understood.

A full-duplex channel allows simultaneous message exchange in both directions. It really consists of two simplex channels, a forward channel and a reverse channel, linking the same points. The transmission rate of the reverse channel may be slower if it is used only for flow control of the forward channel.