How Bluetooth technology works

(CNN) - The big hype behind Bluetooth actually comes down to a small microchip with a radio transceiver. Installed in digital devices like PDAs, mobile phones, PCs and printers, the microchip transmits data and voice without the wires.

Capable of working at up to 721 bps, the chip allows users to exchange information between their Bluetooth-enabled devices. It can automatically exchange and even synchronize data between devices, so a contact number keyed into a mobile phone can be automatically transferred to a PC when the two are in range.

Bluetooth functions on a globally available low radio frequency, operating at 2.4 GHz on the Industrial, Scientific and Medical band. Although the low frequency is unlicensed, which increases interference from other radio frequencies, Bluetooth says the "technology is designed to be fully functional even in very noisy radio environments, and its voice transmissions are audible under severe conditions."

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While digital devices transmitting to one another can be out of line-of-sight, they're designed for use at a distance of 10 meters. Encryption and authentication are also part of the Bluetooth package.

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