TDM (Time Division Multiplexing) and FDM (Frequency Division Multiplexing) are two methods of multiplexing multiple signals into a single carrier.
The advantage of FDM over TDM is in latency. Latency is the time it takes for the data to reach its destination. As TDM allocates time periods, only one channel can transmit at a given time, and some data would often be delayed, though it's often only in milliseconds. Since channels in FDM can transmit at any time, their latencies would be much lower compared to TDM. FDM is often used in applications where latency is of utmost priority, such as those that require real-time information.
FDM and TDM are often used in tandem, to create even more channels in a given frequency range. The common practice is to divide the channel with FDM, so that you have a dedicated channel with a smaller frequency range. Each of the FDM channels is then occupied by multiple channels that are multiplexed using TDM. This is what telecoms do to allow a huge number of users to use a certain frequency band.
Summary:
1. FDM divides the channel into multiple, but smaller frequency ranges to accommodate more users, while TDM divides a channel by allocating a time period for each channel.
2. TDM provides much better flexibility compared to FDM.
3. FDM proves much better latency compared to TDM.
4. TDM and FDM can be used in tandem.
FDM is used in 1st generation analog system whereas TDM is used in
2nd generation analog system.
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