A telephone includes a first channel having a microphone input and a line output, a second channel having a line input and a speaker output, and each channel having a plurality of band pass filters with their outputs coupled to a multiplex circuit. The multiplex circuit selects subsets of the signals in each channel in accordance with the magnitudes of the signals in each band. Thus, full duplex operation is provided in accordance with the spectral content of each channel. In one embodiment of the invention, the multiplex circuits initially allocate alternate bands within each channel and complementary bands between the channels, thereby emulating a complementary comb filter. Thereafter, bands are allocated according to spectral content.