CDMA changes the nature of the subscriber station from a predominately analog device to a predominately digital device. Old-fashioned radio receivers separate stations or channels by filtering in the frequency domain. CDMA receivers do not eliminate analog processing entirely, but they separate communication channels by means of a pseudo-random modulation that is applied and removed in the digital domain, not on the basis of frequency. Multiple users occupy the same frequency band. With CDMA, unique digital codes, rather than separate RF frequencies or channels, are used to differentiate subscribers.
All users share the same range of radio spectrum.
It has gained widespread international acceptance by cellular radio system operators as an upgrade that will dramatically increase both their system capacity and the service quality. It has likewise been chosen for deployment by the majority of the winners of the United States Personal Communications System spectrum auctions. Though CDMA's application in cellular telephony is relatively new, it is not a new technology. When implemented in a cellular telephone system, CDMA technology offers numerous benefits to the cellular operators and their subscribers.