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The advantages of the split-loop technique for analog phase-locked loops with a time delay are well known. In this paper, it will be shown that the digital counterpart of the split-loop offers an additional advantage, since the first oscillator can already convert the incoming signal down into the baseband. If this signal is used for the demodulation, the noise bandwidth of the loop is reduced significantly without changing the acquisition and tracking ranges. The resulting noise bandwidth is calculated and compared to a conventional digital high-gain second-order loop. Furthermore, the effect on the BER performance for DQPSK modulation is simulated [ABSTRACT FROM PUBLISHER]