CDMA versus TDMA

Christina Richards and Scott Creque

Project 1
EE 4984: Telecommunication Networks
April 11, 1996


  1. Overview
    1. General Structure and Technical Differences
    2. Interference
    3. Why is the debate so intense?
  2. The State of the Art
    1. Present Market Status
    2. Trends in Development
  3. Impact of the Controversy on the Consumer
    1. Compatibility Issues
    2. Roaming Difficulties
    3. Unification Possibilities
  4. Contenders and Supporters
    1. Developers of the Technologies
    2. Technologies used by Service Peoviders
    3. Goverment and International Support
  5. Future Projections
    1. Projections - Where will we go from here?
  6. Resources







OVERVIEW

The principle problem facing wireless communications systems is how to allow a large number of users access to a small allotment of frequencies. In today's digital wireless communication systems, there are two principle methods being used to multiplex users on the same frequencies.

General Structure and Technical Differences

The first, and older of the two methods, uses a combination of frequency division and time division to provide multiple access (FDMA and TDMA). Although this method has been proven to be an effective solution to the problem, its major shortcoming is its limited capacity. As an alternative solution, code division multiple access (CDMA) was developed. A CDMA system uses a combination of frequency division and code division to provide multiple user access. Although the capacity of a CDMA system is not unlimited, its limitations are considerably higher than those of an TDMA system.

TDMA has been around for quite a while and has proven itself to be reliable technology capable of providing a large number of users with good quality service. In a traditional system, the total allotted bandwidth is divided into frequency channels. The channels are then divided into a number of time slots. Each user (device) is allocated one time slot. There are several standards for digital FDMA/TDMA systems world wide. Two of these standards include United States Digital Cellular (USDC), also known as IS-54, and Global System for Mobile Communications (GSM) also known as PCS-1900.

FDMA/TDMA Standards
Standard Channel Width (kHz) Time Slots
USDC
30
3
GSM
200
8

CDMA is a very different modulation scheme than frequency or time division. First, the frequency "channel" is 1.244 MHz wide. Second, all of the users of the system share the same channel. A signal to be broadcast on the channel is first "spread-out" over the entire bandwidth (this is known as "spread spectrum"). The signal is encoded using unique codes known only to the transmitter and receiver. Since each signal on the channel is then unique, it can be distinguished from the others and properly received.
The spreading codes are the most important aspect of CDMA technology. The codes are Walsh codes based on a 64X64 Walsh matrix. There are several key characteristics of the Walsh matrix that allow the codes to be unique. In the matrix, every row is orthogonal to every other row. Thus, when the derived codes are used the unique device IDs, no two codes are the same. Moreover, each code differs from every other code by specific and predetermined amount. Theoretically there is no limit on the capacity of a CDMA system. In practice, however, the coding mechanisms are not completely orthogonal to each other, and this places a limit on the capacity at which the system can operate without interference, but even with this restriction the capacity is still tremendous.

As a simple, example let us assume a user is talking into a mobile phone on a CDMA network. The transmitted portion of a voice signal has frequency components from approximately 300~3400 Hz. This analog signal is digitally encoded, using QPSK (Quadrature Phase Shift Keying), at 9600 bps. The signal is then spread to approximately 1.23 Mbps using special codes that add redundancy. Some of these codes include a device ID that is unique to the phone (like a serial number). Next the signal is broadcast over the channel. When broadcast, the signal is added to the signals of the other users in the channel. On the receiving end, the same code is used to decode the incoming signal. The 9600 bps signal is obtained and the original analog signal is reconstructed. When the same code is used on another user's signal, the redundancy is not removed and the signal remains at 1.23 Mbps.

An analogous comparison of a USDC system versus a CDMA system is a conversation in a crowded room. If a listener were using frequency division, he would differentiate conversations by the pitch of the speaker (i.e. lower pitch for men's voices or a higher pitch for women's voices). Time division would necessitate listening to first one person, then the second, then the third, etc. Frequency and time division would be analogous to listening to man#1, women#1, man#2, women#2, etc. CDMA, however, would be analogous to listening to different languages.

Interference

In a standard system the desired signal must be at least 18dB above any noise or interference. The effect of this is that adjacent cells (coverage areas) cannot share the same portion of the spectrum. The problem with this is that not all of the channels in adjacent cells can be used. Due to this "adjacent interference" and the 18dB attenuation requirement, typically only one out of 21 of the available channels can be used in any one cell.
In a CDMA system, however, signals can be received in very high levels of interference. Under worst case conditions, a signal can be received in the prescience of interference that is 18dB higher than the signal. Because of this, channels can be reused in adjacent cells. Typically half of the interference in a cell is due to adjacent cells.
The ability of a CDMA system to receive a signal under such high noise interference conditions is a result of the digital coding process used in spreading the signal. The coding gain of the signal is the ratio of the transmitted bits to the data bits. The North American standard coding gain is 128 or 21dB. Since only 3dB of signal power is required for signal reception, this means that 18dB of noise can be tolerated. The signal can be resolved because there is minimal cross-correlation between all of the signals on the channel. This is a characteristic of the orthogonality and uniqueness of the spreading codes.

Why is the debate so intense?

Why is their a debate over the technology? If CDMA is superior, why are companies still backing an "inferior" technology? Two of the most important factors to consider when choosing a system for a wireless network are:
  1. Capacity of the system
  2. Ability to implement the system
Until quite recently, neither CDMA systems, like IS-95, or TDMA systems, like USDC and GSM, had an optimal combination of these features.
A major concern about CDMA is the fact that it has very little field experience, where as TDMA systems have been operable for quite some time. Fast "time to market" is essential to companies due to the phenomenal pace of today's wireless communications market, and many providers choose to invest in TDMA systems that have already been developed and proven. The very fact that CDMA technology is so new and unproven makes it a big risk for companies to invest in when there is the option of going with a time-proven technology such as TDMA.

CDMA has many benefits over a traditional system. Some benefits of a CDMA system include:
  • 8~10 times more users than traditional FDMA/CDMA
  • better signal quality
  • privacy of coded digital communications
  • no sense of handoff when changing cells
  • easy addition of more users
  • "soft" capacity limit - Additional users add more noise to the cell

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    THE STATE OF THE ART

    Present Status

    For the past few years, TDMA and CDMA supporters have waged an intense lobbying war, arguing the merits of their respective systems. It has not been possible until just recently to test the systems against each other as IS-95 CDMA systems have only recently made it out of the laboratories.

    A big advantage of the TDMA technology is that it was the scheme used in the Interim Standard 54, also known as United States Digital Cellular (USDC) or digital AMPS (D-AMPS), that served to make the transition to a digital system from the first-generation cellular analog AMPS system. Operating with the same channel allocations as the AMPS standard, TDMA was a boon to the market in the late 1980's. It was not, however, designed for the incredible demand now present in many metropolitan areas, even though TDMA increased by three times the capacity of the AMPS system. The rampant growth of the wireless industry is quickly outgrowing the capacities of the USDC system in many markets. Nonetheless, Ericsson, a telecommunications company headquartered in Dallas, TX that is a strong advocate of TDMA, anticipates that the two TDMA based solutions, D-AMPS and PCS 1900 (an adaptation of the European GSM), will capture a large portion of the market. They maintain that though some large operators will adopt CDMA, the technology requires considerable improvement to become a commercially viable product. Since the CDMA standard was announced, they assert that continuous improvements to TDMA have caught up with the performance promised by CDMA.

    The CDMA technology, used in the Interim Standard IS-95, maximizes spectrum efficiency and enables more calls to be carried over a single 1.25 MHz channel. The technology has been widely adopted by major cellular and PCS carriers in the United States and also internationally. CDMA networks provide operators with reliable digital systems that offer higher capacity, large coverage area and improved voice quality. In a December 1995 release, Qualcomm, the San Diego company that developed CDMA, advocated their product by saying, "CDMA provides significant benefits to customers including superior voice quality, enhanced privacy, fraud protection, messaging services and longer-lasting battery power in the phones." Catching the interest of clients is key, and Qualcomm has gained some major players recently. The difficulty with IS-95 is that because CDMA is both new and very complex, development and production of the hardware and software necessary for an operation-capable system was very slow coming at first. Original plans for commercial implementation of CDMA were successively pushed back from 1991 to 1995, and many industry observers were skeptical that even the 1995 deadline would be met. With the break-neck pace of wireless communications today, time-to-market is key, and this was a major handicap at first for CDMA technology. Another major concern about CDMA is the fact that there is actually little field experience with the system, where as TDMA systems have been operable for quite sometime.

    Trends in Development

    In the past ten to twelve months, however, the shift has been strongly towards CDMA. This shift can be attributed to many factors, not the least of which being that the hardware and software needed for a working CDMA system have been developed and are being supported and improved. Also, positive preliminary testing has instilled confidence in the operation of the system outside the laboratory environment. A major triumph came at the end of 1995 when the first commercial CDMA system was launched in Hong Kong. Although Hong Kong has one of the world's most difficult terrains and congested radio frequency environments, the network delivered outstanding performance. Jack Scanlon, executive vice president and general manager of Motorola's Cellular Infrastructure Group said, "The successful deployment of the CDMA Networks in Hong Kong is proof that CDMA will work well anywhere in the world." Promoters of TDMA technology, however, are also working to make TDMA systems more attractive to service providers.

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    IMPACT OF THE CONTROVERSY ON THE CONSUMER

    Compatibility Issues

    The impact of the "controversy" on the common consumer is severe. Various companies are spending millions to push CDMA technology and this will result in aggressive marketing schemes and fast technological changes. One of the primary concerns to the consumer is the incompatibility between the two systems. Since CDMA currently has limited coverage, consumers must choose which system will meet their needs. As CDMA coverage grows, this will be less of a problem. To help with this situation, some companies (i.e. Qualcomm) are offering Dual Mode Phones. These phones are capable of utilizing either service, but are more expensive then a standard phone.

    Roaming Difficulties

    Without a dual mode phone, using A CDMA phone while traveling (roaming) will not be possible unless you are in within the coverage of another CDMA provider.
    Another concern for consumers is the growing GSM presence. GSM is another TDMA standard which offers better performance than USDC. Since providers using TDMA are eager to compete against CDMA, some are choosing to follow GSM standards.

    Unification Possibilities

    As CDMA grows and as the war of wireless is fought, the consumer is faced with a situation much like having a different remote control for stereo, TV, and VCR. As of yet, the "universal remotes" are few and expensive.

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    CONTENDERS AND SUPPORTERS

    The debate over the competing technologies has sparked devotion in supporters almost to the point of religious fervor. This is true particularly among the companies who did much of the initial development of the technologies. Qualcomm was the prime developer of the CDMA technology, and has worked tirelessly to promote its adoption in all wireless markets by developing and improving hardware and software for CDMA systems. Much development was done for TDMA technology by Ericsson. Ericsson was the first supplier to introduce digital technology in the form of D-AMPS (another name for IS-54) which more than tripled the potential capacity of the existing analog AMPS networks and allowed the introduction of new services such as data communications, voice encryption, and calling line identification. (15)

    There are companies and organizations involved at all levels of the controversy, from the development of the technology, to the use of the schemes by the servers in their markets, to the endorsement of technology by governments. Some are staunchly on one side or the other, like Ericsson and Qualcomm; while others keep an interest in both technologies, like Nortel. The following is an overview of the distribution of support among some of the major players in the wireless market.

    Developers of the Technologies

    The success of a technology depends first on the existence of quality hardware and software to support it. As expected, Ericsson and Qualcomm dominate in the race to produce new and better products.

    Qualcomm introduced its QEDesign network planning tool at PCS '95, held in September. QEDesign is a premier design and analysis tool for CDMA system deployment. Shortly thereafter in October of 1995, Qualcomm announced the creation of an ASIC Products business unit to ensure their ready supply. "As service providers move quickly to meet customer demand for CDMA digital service, manufacturers must react by having high-quality wireless products available when and where they are needed. The formation of this business unit enhances Qualcomm's ability to provide that high level of responsiveness for our many CDMA licensees, as well as our own manufacturing requirements," said Rich Sulpizio, chief operating officer of Qualcomm, Incorporated. In January of 1996, the first in a family of products to be produced by Qualcomm to support CDMA was announced. This was the QCT-1000, the world's first wireless local loop phone based on CDMA.
    In the early 1990's Ericsson gained a crucial lead over its competitors by being the first supplier to put D-AMPS networks into commercial service. Ericsson's CMS 8800 system for AMPS and D-AMPS cellular and PCS service is used in networks that currently serve more that 15 million subscribers, making CMS 8800 the world's most successful wireless network system in terms of subscribers served. At CeBIT in Hanover, Ericsson displayed the latest addition to the range of Ericsson radio base stations - a 'micro' base station for GSM 900, DSC 1800, and PCS 1900 wireless networks, as well as a new family of mobile phones for use on the GSM networks.

    Other companies are contributing to the development of the software/hardware technologies needed for CDMA and TDMA. Nortel, formerly Northern Telecomm and Bell Northern Research, has a strategic relationship with Qualcomm to jointly design, develop and manufacture complete CDMA networks for mobile and wireless local loop applications. Nortel was chosen by Sprint Telecommunications Venture to supply them with PCS network equipment and services based on CDMA technology. In November of 1995, DSP Communications, Inc. signed a worldwide ASIC license agreement with Qualcomm to enable them to design, manufacture, and sell Application Specific Integrated Circuits using CDMA technology, for use in cellular, PCS, and other wireless application equipment. "CDMA is rapidly becoming the technology of choice for next-generation cellular and PCS systems in the United States," said Shaul Berger, vice president of sales and marketing for DSPC.

    Technologies used by Service Providers

    Upon completion of the A/B block PCS auctions, CDMA emerged as the leading digital wireless technology in the US marketplace. Most significant was the choice by Sprint Spectrum, formerly known as Sprint Telecommunications Venture, to use CDMA. Sprint Spectrum holds 163.305 million Points of Presence (POPs), making it the largest provider of PCS markets, and they announced in July of last year that they would deploy CDMA technology because it represents the best long-term solution for a seamless national wireless network. "Sprint Telecommunications Venture has selected CDMA as the best technology for its customers, and has selected Nortel/Qualcomm because of our product architecture and CDMA network expertise," said Dr. Irwin M. Jacobs, chairman and CEO of Qualcomm. Other important companies who have chosen CDMA as their system's multiple access technique are PCS PrimeCo. L.P., who boasts the third largest PCS market holdings at 60.538 million POPs, and GTE Mobilenet, who provides PCS service to 20.877 million POPs. The dominance of CDMA is even more prevalent in the Cellular market, where eleven of the top fourteen service providers use CDMA in their network either alone or in conjunction with a previously existing TDMA system that is being phased out.
    In contrast, TDMA systems have remained as the sole multiple access scheme in only 3 of the top fourteen cellular providers, although one of these is AT&T Wireless, the largest cellular carrier at 78.757 million POPs. It also remains in the markets of two other providers in the top fourteen, but is coexists with CDMA, and is intended to be phased out. TDMA has a presence in half of the top fourteen PCS service providers as the PCS 1900 standard, the American version of GSM. The most significant of these perhaps is Atlantic Personal Communication's Washington-Baltimore market that successfully began commercial business in November of 1995.

    Government and International Support

    The International Telecommunications Union (ITU) has recommended CDMA as an approved wireless standard. Developing countries are showing interest in both CDMA and TDMA. "Wireless local loop applications offer developing countries the opportunity to jump-start their economies by enabling people everywhere to communicate. CDMA, with its increased coverage and capacity, makes wireless local loop economical and rapidly available." Dr. Paul Jacobs, vice president and general manager of Subscriber Products for Qualcomm. "In India and other developing countries, we're focusing our efforts on manufacturing and deploying CDMA wireless local loop systems for urban and residential use in densely populated areas," said Chris Simpson, senior vice president of Interantional Marketing at Qualcomm Incorporated. TDMA is also represented in the international market. Ericsson has signed contracts with clients in the Ukraine and other developing countries to implement full D-AMPS systems.

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    FUTURE PROJECTIONS

    With the current rate of development, it is "obvious" that CDMA will displace TDMA as the primary wireless multiple access technology. Because CDMA is ideally suited for the high traffic demands of metropolitan areas, CDMA systems will dominate these markets. TDMA is a proven technology that has already been widely implemented and supported. For this reason it will remain a viable alternative for markets with lower capacity demands. For the savvy investor, now is a prime time to invest in a growing technology that is sure to provide profitable returns. This technology is, of course, CDMA. Two thumbs up!


    RESOURCES

    Qualcomm Home Page
    Ericsson Home Page
    Motorola Home Page
    AT&T Wireless Home Page
    Nortel Home Page
    CDMA Developement Group Home Page

  • Comsearch, Inc. Wireless Engineering Networks Division seminars and presentations
  • _Wireless Communications_, Rappaport 95
  • _Digital and Analog Communications Systems_, Couch 91
  • "Applied Microwave and Wireless," Winter 94

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      Comments to: Christina Richards or Scott Creque
      Last updated: April 11, 1996
      http://fiddle.ee.vt.edu/courses/ee4984/creque_richards.html