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An insertion-based error concealment method and apparatus are provided whereby, instead of directly inserting white noise, a filter is created to shape the white noise. The filtered white noise is then used to replace lost data. The method of the present invention is implemented by first estimating the power spectrum of the previous frame; then designing a filter with transfer function H (f), where| H (f)| 2= the estimated power spectrum; and finally generating the replacement packet using noise which has been spectrally modified by the filter. The resulting filtered noise has the same power spectrum as the previous packet but is not highly correlated with it.