The present invention provides a method, data modulator, modem, computer readable medium and system for allocating bits to sub-carriers of data channel frequencies for spectrally efficient full-duplex transmission. Bits are allocated successively to a plurality of sub-carriers for a data channel based on minimal power consumption, a power mask for each sub-carrier, a bit capacity of each sub-carrier, and a predetermined data rate. Allocation of bits is ceased when at least one of: a predetermined total power budget has been substantially exhausted, power masks for the plurality of sub-carriers have been substantially exhausted, bit capacities for the plurality of sub-carriers have been substantially exhausted, and the predetermined data rate has been reached.