An OFDM signal may be regarded as the sum of a number of individual sub-carrier signals, each modulated (typically using QAM) by its own modulating signal. This composite signal is then used to modulate the main carrier.
OFDM modulation and demodulation are typically (as of 2001) implemented using [digital filter]? banks generally using the Fast Fourier Transform.
When OFDM is used in conjunction with [channel coding]? techniques, it is described as Coded orthogonal frequency division modulation (COFDM). As the overhead of doing this in an already digital system is low, and the gains substantial, practical OFDM/DMT systems are all actually COFDM.
Although highly complex, COFDM has high performance under even very challenging channel conditions.
By combining the OFDM technique with error-correcting codes, adaptive equalization and reconfigurable modulation, COFDM has the following properties:
COFDM also generally has a nearly 'white' spectrum, giving it benign electromagnetic interference properties with respect to other signals.
For these reasons, COFDM is frequently used in applications such as ADSL modems.