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What is the difference between unlicensed and licensed frequency bands?

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What is the difference between unlicensed and licensed frequency bands?

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In most cases unlicensed bands are industrial, scientific and medical (ISM) radio bands which originally were reserved for non-communication purposes. Hence, unlicensed operation needs to be tolerant of interference from other devices and limit output power according to local radio band regulations. Licensed operation guarantees interference-free operation and transmission with necessary output power, which eventually results in much longer link distances.

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