Channel Multiplexing, Bandwidth, Data Rate and Capacity

Nikola Zlatanov*

This article gives a brief overview of channel multiplexing techniques like FDM, TDM etc. and as to how
they are used in computer communication.
Channel multiplexing is the process of splitting or sharing the capacity of a high speed
channel/telecommunication link to form multiple low capacity/low speed sub-channels. Each such sub-
channel can then be used by multiple end nodes as dedicated links. Multiplexing can usually be done in
different domains like time, frequency and space (and even combinations of these).

Channel Multiplexing
For computer communication, though multiplexing techniques like TDM, FDM were initially used mainly
in backbone links connecting multiple data exchanges, later they have percolated widely into the
access/last mile links too, including inside home networks.
Time Division Multiplexing (TDM)
In TDM, a high speed data channel/link is made to carry data of multiple connections/end nodes in
different time slots, in a round robin fashion. TDM is similar in concept to multitasking computers, where
the main processor carries out multiple tasks simultaneously. In multitasking processors, though the
processor executes only one task at any instant of time and keeps shuttling between multiple tasks in
some order, because of the high speed in which it executes, each task thinks as though the processor is
dedicated only to it.
Similarly, in TDM, data of each connection is segmented into smaller units, so that they fit inside mini
time slots. The link transmits these small units of data from multiple connections in a round robin fashion,
periodically allotting a mini time slot for each user, in the time domain.
In TDM, the basic repeating unit is a frame. A TDM frame consists of a fixed number of time slots. Each
time slot inside a frame carries data belonging to a specific end node/connection. Thus multiple logical
sub-channels/links are created inside a single channel. It is also possible to give multiple slots within a
frame to the same user, thereby having the provision of having different capacity sub-channels within the
same link.
Assuming that there are “n” end users, each requiring a link with a capacity of X Kbps, then to
successfully multiplex these each end users on a channel, the channel’s capacity needs to be at least
equal to n times X Kbps.
The Figure given below illustrates a sample TDM scheme with 4 users being served in a round robin
fashion in the time domain.
An example TDM frame with 4 time slots serving 4 different users
In the example given in the figure, the TDM main channel servers a total of four users and hence creates
four sub-channels. Each user’s data is carried in a specific slot inside each frame. For e.g. Channel-1’s
(User 1) data is always carried in the first slot of each frame.
The basic principle of any TDM based protocol remains the same as described above, though there are
multiple variants, based on
• the transmission speed
• number of frames generated per second
• the number of time slots within each frame
• the frame structure etc.
TDM is typically used in WAN digital transmission links, in both trunk and access networks. ISDN
(Integrated Services Digital Network) is an example of a protocol using TDM at the access network, to
connect home users to their nearest ISP, using the local loop (telephone link). In ISDN, there are a total
of 3 sub-channels, with two of them known as B-Channels (Bearer Channels), each with a capacity of
64Kbps being used to carry data and the third known as D-Channel with a capacity of 16Kbps being
used to carry signaling information.
Standard T1/E1 serial links are classical examples of TDM based protocols and are used as trunk links
between data exchanges. While T1 supports an aggregate rate of 1.54 Mbps with support for 24 sub-
channels, each with a capacity of 64Kbps, E1 supports an aggregate rate of 2.08 Mbps with support for
32 sub-channels, each with a capacity of 64Kbps. TDM links with higher capacity include T2, T3 and
SONET Optical links.
Time Division Duplex (TDD) is a form of TDM, where within the same TDM frame, some slots are used
for uplink direction (end nodes to network) and some slots are used for downlink direction (network to
end nodes), thereby enabling full duplex communication using the same TDM link.
Frequency Division Multiplexing (FDM)
In FDM, the spectrum (frequency range) of a high capacity link is divided into different non-overlapping
intervals/carriers. Data of different end nodes are then modulated using these different carriers, so that
the resultant signal of each end node occupies a different region in the frequency domain. Between each
adjacent carriers, a small guard band is left unused, so as not to cause interference between closely
separated carriers.
In FDM, at any instant of time, we would have electromagnetic signals corresponding to each node/sub-
channel, unlike in TDM, where at any instant of time, the channel would only have electromagnetic signal
belonging to one end node/sub-channel. This is shown in the diagram given below.

An example FDM with 6 different frequency carriers coexisting simultaneously in the time domain

Traditional FM Radio and Broadcast TV are classical examples of applications using FDM, where data
belonging to each radio station/ TV channel is modulated over a different carrier, as shown in the
diagram given below.

Three baseband channels modulated onto different frequency carriers to separate them in the frequency domain
In computer communication, the concept of basic FDM and variants of FDM are widely used both in LAN
and WAN environments. DSL and cable modem links are typical examples of physical layer protocols
using FDM for achieving high data rates. In DSL, which also uses the standard telephone last mile local
loop line, multiple sub-carriers, each with a bandwidth of 4KHz. are used to carry users data. The
baseband region from 0 to 4KHZ is left for basic POTS voice calls. Above this, some number of sub-
carriers are allotted for upstream traffic and a higher number of sub-carriers are allotted for downstream
traffic. Similarly, cable modem has a separate frequency band for upstream traffic and a range of sub-
carriers for downstream traffic.
An example diagram showing the sub-carrier spectrum allocation for POTS, DSL upstream and
downstream directions are given in the diagram below:

FDM being used in ADSL, with different frequency sub-carriers for POTS, ADSL upstream and ADSL
downstream (diagram courtesy Wikipedia)
In DSL, to achieve high data rates, a line coding technique like QAM is used on top of each sub-carrier.
Thus both FDM and line coding techniques are combined at the physical layer to achieve high
broadband data rates.
FDM is also used in some variants of Fast Ethernet (100 Mbps) and Gigabit Ethernet (1000 Mbps) LAN
protocols, where multiple carriers are used to achieve the overall data rate supported by the underlying
physical layer.
Variants of FDM
Wavelength Division Multiplexing (WDM) and DWDM (Dense-WDM) used in optical Networks, are based
on principles similar to FDM, except that their carriers are based on different wavelengths instead of
different frequencies
Frequency Division Duplexing (FDD) is a form of FDM, where some set of frequencies/carriers are
used for carrying uplink direction traffic and some other set of frequencies are used for carrying downlink
traffic, thereby enabling full duplex communication using FDM.
Spread Spectrum techniques are variants of FDM, where the data is carried or spread over a wide
range of frequency spectrum. In normal FDM, a single carrier is used to carry data corresponding to an
end node. But in Spread spectrum techniques, multiple carriers are used to carry data corresponding to
an end node, with each carrier carrying a small piece of data. FHSS (Frequency Hopping Spread
Spectrum), DSS (Direct Sequence Spread Spectrum) and OFDM (Orthogonal Frequency Division
Multiplexing) are different types of spread spectrum techniques.
In FHSS, the frequency of the carrier varies from instant to instant, whereas in DSS, data is split into
smaller units and simultaneously carried by multiple carriers, as shown in the diagram given below
A FHSS where 8 different carriers are used, with data hopping on top of different carriers in a pre-
determined order
CDMA (Code Division Multiple Access) is a form of DSS, where a codeword is combined with data to
spread the signal over a wide range of spectrum.
OFDM is a form of DSS that is widely used in Wireless LAN protocols (802.11 a/g), wherein a set of
carriers that are orthogonal (do not interfere with each other) are used to carry the data signal, as shown
in the diagram below.

An OFDM scheme where 4 orthogonal frequency sub-carriers are used to spread the information over a wider spectrum

Orthogonal Frequency Division Multiplexing (OFDM) is used for both wired and wireless networks
Space Division Multiplexing (SDM)
In SDM, the same set of frequencies or same set of TDM signals are used in two different places that are
geographically wide apart in space, so that one does not interfere with the other. Cellular communication,
where the same set of carrier frequencies are reused (frequency reuse) in cells that are not close to one
another is a classic example of SDM. Another example of SDM is the FM radio broadcast, where the
same set of carrier frequencies are used in different cities that are geographically apart. These are
examples of techniques where SDM and FDM are combined.
Combination of FDM,TDM and SDM
GSM (Global System for Mobile Communication) protocol combines both TDM and FDM, to achieve full
duplex wireless communication between the mobile handsets and the base stations. While one set of
frequencies are used as base carriers from mobile handsets to base station, another set of non-
overlapping frequencies are used as base carriers from base stations to mobile handsets, thereby
making use of FDM principles. Within each carrier, GSM uses TDM, to carry voice and data belonging to
multiple mobile users simultaneously, each in different time slots. Additionally the same set of carrier
frequencies and TDM schemes are reused beyond a certain minimum distance, thereby making use of
SDM. Thus GSM is an example protocol that uses FDM, TDM and SDM.

Relationship between Bandwidth, Data Rate and Channel Capacity

Before, going into detail, knowing the definitions of the following terms would help:
Signal Bandwidth – the bandwidth of the transmitted signal or the range of frequencies present in the
signal, as constrained by the transmitter.
Channel Bandwidth – the range of signal bandwidths allowed by a communication channel without
significant loss of energy (attenuation).
Channel Capacity or Maximum Data rate – the maximum rate (in bps) at which data can be transmitted
over a given communication link, or channel.
In general, information is conveyed by change in values of the signal in time. Since frequency of a signal
is a direct measure of the rate of change in values of the signal, the more the frequency of a signal,
more is the achievable data rate or information transfer rate. This can be illustrated by taking the
example of both an analog and a digital signal.
If we take analog transmission line coding techniques like Binary ASK, Binary FSK or Binary PSK,
information is transferred by altering the property of a high frequency carrier wave. If we increase the
frequency of this carrier wave to a higher value, then this reduces the bit interval T (= 1/f) duration,
thereby enabling us to transfer more bits per second.
Similarly, if we take digital transmission techniques like NRZ, Manchester encoding etc., these signals
can be modelled as periodic signals and hence is composed of an infinite number of sinusoids,
consisting of a fundamental frequency (f) and its harmonics. Here too, the bit interval (T) is equal to the
reciprocal of the fundamental frequency (T = 1/f). Hence, if the fundamental frequency is increased, then
this would represent a digital signal with shorter bit interval and hence this would increase the data rate.
So, whether it is analog or digital transmission, an increase in the bandwidth of the signal, implies a
corresponding increase in the data rate. For e.g. if we double the signal bandwidth, then the data rate
would also double.
In practice however, we cannot keep increasing the signal bandwidth infinitely. The telecommunication
link or the communication channel acts as a police and has limitations on the maximum bandwidth that it
would allow. Apart from this, there are standardization transmission constraints that strictly limit the
signal bandwidth to be used. So the achievable data rate is influenced more by the channel’s bandwidth
and noise characteristics than the signal bandwidth.
Nyquist and Shannon have given methods for calculating the channel capacity (C) of bandwidth limited
communication channels.
Nyquist Criteria for maximum data rate for noiseless channels
Given a noiseless channel with bandwidth B Hz, Nyquist stated that it can be used to carry
almost 2B signal changes (symbols) per second.
The converse is also true, namely for achieving a signal transmission rate of 2B symbols per second
over a channel, it is enough if the channel allows signals with frequencies up to B Hz.
Another implication of the above result is the sampling theorem, which states that for a signal whose
maximum bandwidth is f Hz, it is enough to sample the signals at 2f samples per second for the purpose
of quantization (A/D conversion) and also for reconstruction of the signal at the receiver (D/A conversion).
This is because, even if the signals are sampled at a higher rate than 2f ( and thereby including the
higher harmonic components), the channel would anyway filter out those higher frequency components.
Also, symbols could have more than two different values, as is the case in line coding schemes like QAM,
QPSK etc. In such cases, each symbol value could represent more than 1 digital bit.
Nyquist’s formulae for multi-level signaling for a noiseless channel is
C = 2 * B * log M,
where C is the channel capacity in bits per second, B is the maximum bandwidth allowed by the channel,
M is the number of different signaling values or symbols and log is to the base 2.
For example, assume a noiseless 3-kHz channel.
1. If binary signals are used, then M= 2 and hence maximum channel capacity or achievable data
rate is C = 2 * 3000 * log 2 = 6000 bps.
2. Similarly, if QPSK is used instead of binary signaling, then M = 4. In that case, the maximum
channel capacity is C = 2 * 3000 * log 4 = 2 * 3000 * 2 = 12000bps.
Thus, theoretically, by increasing the number of signaling values or symbols, we could keep on
increasing the channel capacity C indefinitely. But however, in practice, no channel is noiseless and so
we cannot simply keep increasing the number of symbols indefinitely, as the receiver would not be able
to distinguish between different symbols in the presence of channel noise.
It is here that Shannon’s theorem comes in handy, as he specifies a maximum theoretical limit for the
channel capacity C of a noisy channel.

Shannon’s channel capacity criteria for noisy channels

Given a communication channel with bandwidth of B Hz. and a signal-to-noise ratio of S/N, where S is
the signal power and N is the noise power, Shannon’s formulae for the maximum channel capacity C of
such a channel is
C = B log (1 + S/N)
For example, for a channel with bandwidth of 3 KHz and with a S/N value of 30 DB, like that of a typical
telephone line, the maximum channel capacity is
C = 3000 * log (1 + 30) = 30000 bps (approx.)
Using the previous examples of Nyquist criteria, we saw that for a channel with bandwidth 3 KHz, we
could double the data rate from 6000 bps to 12000 bps., by using QPSK instead of binary signaling as
the line encoding technique. Using Shannon’s criteria for the same channel, we can conclude that
irrespective of the line encoding technique used, we cannot increase the channel capacity of this channel
beyond 30000bps.
In practice however, due to receiver constraints and due to external noise sources, Shannon’s theoretical
limit is never achieved in practice.
 Thus to summarize the relationship between bandwidth, data rate and channel capacity,
In general, greater the signal bandwidth, the higher the information-carrying capacity
But transmission system & receiver’s capability limit the bandwidth that can be transmitted
Hence data rate depends on:
Available bandwidth for transmission
Channel capacity and Signal-to-Noise Ratio
Receiver Capability
More the frequency allotted, more the channel bandwidth, more the processing capability of the receiver,
greater the information transfer rate that can be achieved.

REFERENCES

[1] Bates, Regis J; Bates, Marcus (2007), Voice and Data Communications, ISBN 9780072257328

[2] "rfc2068 - HTTP/1.1". Retrieved 2010-09-23.

[3] http://iopscience.iop.org/1367-2630/14/3/033001

[4] "Multiplexing file handles with select() in Perl".

[5] "Federal Standard 1037C: Glossary of Telecommunications Terms". Institute for Telecommunication
Services. Retrieved 2009-10-19.

[6] Computer Networking Demystified http://computernetworkingsimplified.com/physical-

layer/relationship-bandwidth-data-rate-channel-capacity/
http://computernetworkingsimplified.com/physical-layer/overview-channel-multiplexing-techniques/

[7] Renlund, Mike (2011), System Using Wavelength Multiplexing

* Mr. Nikola Zlatanov spent over 20 years working in the Capital Semiconductor Equipment Industry. His work at Gasonics, Novellus,
Lam and KLA-Tencor involved progressing electrical engineering and management roles in disruptive technologies. Nikola received his
Undergraduate degree in Electrical Engineering and Computer Systems from Technical University, Sofia, Bulgaria and completed a
Graduate Program in Engineering Management at Santa Clara University. He is currently consulting for Fortune 500 companies as well
as Startup ventures in Silicon Valley, California.