CDMA is a digital wireless technology that uses spread spectrum technique. It was pioneered and commercially developed by QUALCOMM. The first CDMA system was launched in 1995 in Hong Kong and Korea. CDMA uses a PN code generator at the transmitter and receiver to spread the data signal over a wide frequency band. It allows multiple users to be multiplexed over the same physical channel along with supporting soft handoffs between cells. However, its performance decreases as the number of users increases and it has limitations in terms of coverage, roaming, and not supporting SIM cards for mobile commerce applications.