Bill,

That is the AGC which makes it sound like that.  Look at my webpage 
article dealing with "Noisy K3" to give you some information about how 
to adjust the AGC parameters to reduce that effect.

73,
Don W3FPR

On 4/28/2012 9:00 AM, Bill wrote:
> I have had my K3 for a couple of months - so I am still learning.
>
> At this point, my primary concern is the amount of background hiss that
> I have when no signals are being received. For example: When on 75 this
> AM I am listening to a local net. When no one is talking the background
> hiss rises.
>
> When I switch to my TS-480, signals are just as strong and everything is
> the same - EXCEPT there is nearly zero background hiss. I use the ATT on
> both rigs. I much prefer the near FM silence of the 480.
>
> I have already reduced it somewhat by use of the RX Equalizer. However,
> it needs a lot more reduction to get to what I feel is an acceptable
> level. Of note: I live in a rural area that has no background noise -
> daytime level on 75 meters is zero.
>
> Suggestions would be most appreciated.
>
> Bill W2BLC
>
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