Local Multipoint Distribution Service (LMDS) has the potential to become a
viable alternative to coaxial cable, fiber and other wired and wireless tec
hnologies providing "last mile" communication services. A major obstacle, h
owever, is the high equipment cost. While for example cable modems supporti
ng two-way services are available for $200 to $300, LMDS modem providing si
milar services will cost over $1000. The major cost driver of LMDS equipmen
t is the radio frequency (RF) unit, as Ka-band technology still is quite ex
pensive. The modem design must minimize the overall architecture cost, and
low-cost modems requiring an expensive architecture should not be used. The
channel characteristics of LMDS systems are very different from those of f
iber, coaxial cable, and lower frequency wireless links, major channel impa
irments being non-linear high power amplifier (HPA), high phase noise and h
igh co-channel interference. Modems should therefore be developed specifica
lly for LMDS systems. This report deals with the choice of coding and modul
ation schemes, the LMDS channel, and how the channel impairments should be
overcome by digital signal processing algorithms.