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The signal strength received by the mobile phone depends on the distance from the GSM radio station and the environment between the mobile phone and the GSM radio station.
The signal strength decreases exponentially with the distance from the GSM radio station as shown in the figure:
If the area between the GSM radio station and the mobile phone is flat, open landscape, the signal strenght decreases as shown in the figure above. If the area is hilly, the signal strenght behind the hills is attenuated even further. Trees or houses in the path between the GSM radio station and the mobile phone will also decrease the level of the signal.
If the mobile phone is used in urban environments, the so-called multipath fading is also contributing to attenuation of the rado signal. The signal can be reflected once or several times between the buildings. If the signal from the GSM radio station is reflected from two different buildings, the resulting signal may be amplified (if the two signals are in phase) or it may be attenuated (if the two signals are not in phase).
This phenomena can also be observed when receiving normal FM radio in a car, when being far from the radio station. In one place the signal may be good, but after moving a meeter or two (towards a red light!) the signal may be completely gone.
In areas with little mobile phone traffic - such as rural areas - one tries to put the GSM radio stations where they give the best coverage - usually on top of hills. In areas with much mobile phone traffic - such as urban areas - one tries to put the GSM radio station in such a way that their signal does not disturb the neighbouring cells - usually on low buildings where higher buildings "shields" the signal towards the other cells.
In the efforts to make sure that two GSM radio stations does not disturb eachother, one may incidentially risk not to have coverage in an area where someone wishes to use their mobile phone.
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