Orthogonal frequency division multiplexing is multicarrier system in which available spectrum is divided into many narrow bands. Data transmission is parallel through these narrow bands. OFDM modulation technique is very popular and it has been adopted in today's radio communications, in the Wi-Fi arena, DAB digital radio etc. Inspite of having the large advantages, OFDM is very sensitive to the Carrier frequency offset (CFO) problem. Carrier frequency offset is due to Doppler effects and the instabilities in oscillator frequencies at transmitter and receiver side. Carrier frequency offset which is the difference between the transmitter frequency and the receiver frequency, damages orthogonality and reduces the systems performance. This paper discusses the effect of carrier frequency offset and its estimation method. For simulation, Long Term Evolution (LTE) specifications are used. In this paper, the fractional frequency offset estimation method is discussed. A training signal is used to estimate the carrier frequency offset which reduces the overhead of the system. This methods also improves the frequency offset estimation range and accuracy with low complexity.
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