vim: how to substitute ^H into an delete action

One question puzzles me for a long time and I'm not sure if it can be
easily solved in vim...

say I have some log file, if I copy & paste into this email, it will
look like this:

PRVDRI-VFTTP-32:vol#show term len 50
PRVDRI-VFTTP-32:vol#show subsc
PRVDRI-VFTTP-32:vol#show subscribers

actually in my vim terminal, it displays following literally


5057 ^MPRVDRI-VFTTP-32:vol#show ^H^H^H^H^H ^H^H^H^H^Hterm len 50


5058 ^MPRVDRI-VFTTP-32:vol#show subsc
5059 ^MPRVDRI-VFTTP-32:vol#show subscribers

apparently someone input something wrong in his terminal emulator,
delete them back with backspace, then input some new command into the
text. so the logging program record all sequences without converting the
^H into "delete backward on charactor" action.

is there a way to substitute, say all ^H , into an action that delete
backward one charactor?

b.t.w the ^H here is ONE special charactor, not ^ and H

I have similiar issues for some other special charactors (^G, ^M, etc).

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