A channel characteristic of a transmission channel between a remote terminal and a central office is estimated by collecting information in the remote terminal, transferring this information from the remote terminal to the central office and matching the received information at the central office with a channel and remote terminal simulation model. The values of parameters of the latter simulation model, which define the channel characteristic to be estimated, are determined as a result of the matching process. The information collected by the remote terminal typically is information that is automatically collected by the remote terminal for operational purposes. such as equalizer setting and, bit allocation.