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Wireless Network Design: Optimization Models and Solution ...

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2 Introduction to <strong>Wireless</strong> Communications 37<br />

cient system to transmit information over parallel channels. Consider for instance a<br />

simple frequency division multiplexing (FDM) system in which the available b<strong>and</strong>width<br />

B Hz is divided into m = B/b non-overlapping segments of width b Hz. A<br />

traditional modulation pulse <strong>and</strong> carrier can be used in each of these segments.<br />

However, in an OFDM system, the carrier frequency on each of these smaller segments<br />

(typically referred to as subcarriers) are selected in such a manner that they<br />

are orthogonal with each other as shown in Figure 2.17. As can be seen from the<br />

figure, at the center frequency of each subcarrier, the contributions from the other<br />

subcarriers is 0. This orthogonality is the key to the superior spectral efficiency of<br />

OFDM since it allows numerous subcarriers to be used within the given b<strong>and</strong> without<br />

causing any interference between subcarriers.<br />

There are several variations of OFDM [24] <strong>and</strong> it has become widely used in<br />

next generation wireless st<strong>and</strong>ards such as WiMAX. OFDM based signaling is also<br />

used in wire-line systems where it is frequently referred to as discrete multitone<br />

modulation (DMT). In this chapter, we only focus on a very basic OFDM system<br />

<strong>and</strong> provide the key insights into its performance.<br />

Consider the basic blocks in an OFDM system as shown in Figure 2.18. The input<br />

data stream is first parsed into groups of N bits. Without loss in generality consider<br />

the transmission of one input vector X of length N. This input is first passed through<br />

Fig. 2.16 Simple illustration of FDMA, TDMA <strong>and</strong> frequency hopping CDMA

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