OFDM - Orthogonal frequency-division multiplexing. OFDM transceiver implemented using IFFT / FFT.
The primary advantage of OFDM over single-carrier schemes is its ability to cope with severe channel conditions (for example, attenuation of high frequencies in a long copper wire, narrowband interference and frequency-selective fading due to multipath) without complex equalization filters. Channel equalization is simplified because OFDM may be viewed as using many slowly-modulated narrowband signals rather than one rapidly-modulated wideband signal. The low symbol rate makes the use of a guard interval between symbols affordable, making it possible to handle time-spreading and eliminate intersymbol interference (ISI).
Advantages:
Can easily adapt to severe channel conditions without complex equalization.
Robust against narrow-band co-channel interference.
Robust against intersymbol interference (ISI) and fading caused by multipath propagation.
High spectral efficiency as compared to conventional modulation schemes, spread spectrum, etc.
Efficient implementation using Fast Fourier Transform (FFT).
Low sensitivity to time synchronization errors.
Tuned sub-channel receiver filters are not required (unlike conventional FDM).
Facilitates single frequency networks (SFNs); i.e., transmitter macrodiversity.
Disadvantages:
Sensitive to Doppler shift.
Sensitive to frequency synchronization problems.
High peak-to-average-power ratio (PAPR), requiring linear transmitter circuitry, which suffers from poor power efficiency.
Loss of efficiency caused by cyclic prefix/guard interval.