The spectral characteristics of minimum-phase signals and their detection process are outlined in this paper. Investigation of the resulting envelope distortion, as a consequence of reducing the channel bandwidth of minimum-phase signals to one half, is the prime objective of the study reported here. This bandwidth reduction is important in applications such as mobile radio services, where the available bandwidth is tightly controlled and compatibility with simple envelope detection will be advantageous. Some interesting results of computer simulation of the reduced bandwidth scheme, and its performance under different fading channel conditions are presented. A novel correction method at the receiver, which gives distortionless envelope demodulation, is described.