What does the term 'CDMA' stand for in telecommunications?

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Prepare for the Certified Compensation Professional (CCP) Electronic Transactions Association (ETA) Exam with flashcards and multiple choice questions. Each question includes hints and explanations to enhance your understanding. Get ready for your CCP exam today!

The term 'CDMA' stands for Code-Division Multiple Access. This technology is significant in telecommunications as it allows multiple users to occupy the same time and frequency spectrum by assigning a unique code to each user. This method enhances the efficiency of the communication spectrum, maximizing the capacity of networks and enabling simultaneous voice and data transmission.

CDMA works by encoding each user's signal with a unique code, which spreads the signal over a wider bandwidth. This means that even if multiple signals are transmitting at the same time, the unique codes allow the receiver to distinguish between them effectively. This is particularly beneficial in maximizing the use of available frequencies, especially in environments where many users are accessing the network simultaneously.

Understanding this concept is crucial in telecommunications and wireless communication systems, as CDMA is a foundational technology that has shaped mobile communication standards.

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