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Traditional regulatory structures have been built for an analog model and are not optimized for cognitive radio.

Regulatory bodies in the world (including the Federal Communications Commission in the United States and Ofcom in the United Kingdom) as well as different independent measurement campaigns found that most radio frequency spectrum was inefficiently utilized.

A cognitive radio (CR) is a radio that can be programmed and configured dynamically to use the best wireless channels in its vicinity.

Such a radio automatically detects available channels in wireless spectrum, then accordingly changes its transmission or reception parameters to allow more concurrent wireless communications in a given spectrum band at one location.

A CR "monitors its own performance continuously", in addition to "reading the radio's outputs"; it then uses this information to "determine the RF environment, channel conditions, link performance, etc.", and adjusts the "radio's settings to deliver the required quality of service subject to an appropriate combination of user requirements, operational limitations, and regulatory constraints". Snider, Lawrence Lessig, David Weinberger, and others say that low power "smart" radio is inherently superior to standard broadcast radio. It was a novel approach in wireless communications, which Mitola later described as: The point in which wireless personal digital assistants (PDAs) and the related networks are sufficiently computationally intelligent about radio resources and related computer-to-computer communications to detect user communications needs as a function of use context, and to provide radio resources and wireless services most appropriate to those needs.

Some "smart radio" proposals combine wireless mesh network—dynamically changing the path messages take between two given nodes using cooperative diversity; cognitive radio—dynamically changing the frequency band used by messages between two consecutive nodes on the path; and software-defined radio—dynamically changing the protocol used by message between two consecutive nodes. The concept of cognitive radio was first proposed by Joseph Mitola III in a seminar at KTH (the Royal Institute of Technology in Stockholm) in 1998 and published in an article by Mitola and Gerald Q. Cognitive radio is considered as a goal towards which a software-defined radio platform should evolve: a fully reconfigurable wireless transceiver which automatically adapts its communication parameters to network and user demands.

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