Transmission of a signal over a balanced line reduces the influence of noise or interference due to external stray electric fields. Any external signal sources tend to induce only a common mode signal on the line and the balanced impedances to ground minimizes differential pickup due to stray electric fields. The conductors are sometimes twisted together to ensure that each conductor is equally exposed to any external magnetic fields that could induce unwanted noise.
Some balanced lines also have electromagnetic shielding to reduce the amount of noise introduced.
A balanced line allows a differential receiver to reduce the noise on a connection by rejecting common-mode interference. The lines have the same impedance to ground, so the interfering fields or currents induce the same voltage in both wires. Since the receiver responds only to the difference between the wires, it is not influenced by the induced noise voltage. If twisted pair becomes unbalanced, for example due to insulation failure, noise will be induced. Examples of twisted pairs include Cat-3 Ethernet cables or telephone wires.
Compared to unbalanced circuits, balanced lines reduce the amount of noise per distance, allowing a longer cable run to be practical. This is because electromagnetic interference will affect both signals the same way. Similarities between the two signals are automatically removed at the end of the transmission path when one signal is subtracted from the other