This paper presents a detailed analysis of the applicability and benefits of baseline dependent averaging (BDA) in modern radio interferometers and in particular the Square Kilometre Array (SKA). We demonstrate that BDA does not affect the information content of the data other than a well-defined decorrelation loss for which closed form expressions are readily available. We verify these theoretical findings using simulations. We therefore conclude that BDA can be used reliably in modern radio interferometry allowing a reduction of visibility data volume (and hence processing costs for handling visibility data) by more than 80%.
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