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Orthogonal Frequency Division Multiplexing (OFDM) has been successfully applied to a wide variety of digital communications applications over the past several years and has been adopted as the wireless LAN standard. This paper presents the challenges associated with implementing OFDM for high speed wireless data communication and how Wide-band OFDM (W-OFDM), a variation of OFDM improves bandwidth and noise tolerance.


Just what is OFDM, and what makes it better? To answer this question, we need to review some basic ideas about wireless telecommunications systems, and how OFDM fits into the overall picture.

In what follows, we will review the following concepts needed to understand OFDM; digital messages, carrier waves, modulation and multiplexing. Then we will explain OFDM and why it is used.


Wireless communications systems are used to send messages between two locations using radio waves which travel across free space. Messages of all types (voice, music, image, video, text) are usually converted to digital form and are represented as a stream of 1's and 0's called bits (binary digits). Voice messages can be represented by about 10,000 bits per second, CD quality music needs about 100,000 bits/sec, and TV quality video messages require about 1,000,000 bits per second, plus or minus. Text messages can be sent at any speed, depending on how long you are willing to wait.

Carrier Waves

Radio waves are electromagnetic waves used to carry a message over a distance. Thus radio waves are also called a carrier waves. A carrier wave looks like a sine wave, and moves like a train at the speed of light. The frequency of the carrier wave is the number of times per second that the wave train goes up and down and back up as it moves past you, and is measured in units of cycles per second or Hertz.

Carrier (electromagnetic) waves of different frequencies and wavelengths have different properties. For example, radio waves can travel through walls, but light waves cannot. Lower frequency waves tend to travel further, and can bend around corners. Higher frequency waves travel more or less only via line of sight. Thus certain parts of the radio spectrum are better suited for certain types of telecommunications. For indoor wireless communications through walls over a distance of several hundred feet, or outdoor communications over several miles mostly over line of sight with perhaps some trees in the way, carrier frequencies in the range of 1 to 5 GHz (gigahertz or billion cycles per second) are used.


Modulation is the process whereby a carrier wave of a particular frequency is modified or modulated by the message signal, so that the modulated carrier wave can be used to carry the message over a distance. For digital messages (a stream of 1's and 0's), there are three basic kinds of modulation:

  • Amplitude Shift Keying (ASK) (digital AM) in which the amplitude of the carrier wave is modulated in step with the message signal.

  • Frequency Shift Keying (FSK) (digital FM) in which the frequency of the carrier wave is modulated in step with the message signal.

  • Phase Shift Keying (PSK) (digital PM) in which the phase of the carrier wave is modulated in step with the message signal.

ASK and PSK may also be used at the same time on one carrier, which is called Quadrature Amplitude Modulation (QAM) or Amplitude/Phase Keying (APK). The receiver is designed to receive the carrier wave, detect these amplitude and phase shifts in the carrier (demodulation), and thus retrieve the digital message.

When a carrier wave is modulated, it is no longer a single frequency but is spread out over a range of frequencies. The bandwidth of the modulated carrier wave is the range from lowest to highest frequency, with the original carrier frequency in the center. The bandwidth is approximately equal to the speed of the digital message, e.g. 10,000 Hz (10 KHz) for voice or 1,000,000 Hz (1 MHz) for video.

OFDM (Orthogonal Frequency Division Multiplexing) is a method of using many carrier waves instead of only one, and using each carrier wave for only part of the message. OFDM is also called multicarrier modulation (MCM) or Discrete Multi-Tone (DMT). We first describe Multiplexing, then Frequency Division and then Orthogonal. It is important to stress that OFDM is not really a modulation scheme since it does not conflict with other modulation schemes. It is more a coding scheme or a transport scheme.


Multiplexing is a way to split a high speed digital message into many lower speed ones. A useful analogy is a highway with a toll collection point. Where each car is one bit of the message, and the number of cars passing a given point in one second is the speed of the message, which represents bits per second. The single lane highway may be split into 10 different lanes for paying tolls. At a point beside the single lane highway, the cars will pass at high speed, whereas at the toll booths, the cars will pass slowly. Thus the single high speed message (flow of cars past a point of single lane highway) is divided into many low speed messages (flow of cars past many toll booths). In a perfect system, the first car will take the first toll lane, the second car takes the second toll lane, etc. The 11th car takes the first toll lane again, and follows the first car. A multiplexer is a switch that assigns each car to one of the many toll booths.

Demultiplexing is the opposite, where many low speed messages are combined into one high speed message. Following the analogy, demultiplexing is where the many low speed messages (cars) passing slowly through the toll booth lanes are merged back into a high speed message travelling quickly on a single lane highway.

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