Near-far effect: The near-far problem is a condition in which a receiver captures a strong signal and thereby makes it impossible for the receiver to detect a weaker signal. The near-far problem is particularly difficult in CDMA systems, where transmitters share transmission frequencies and transmission time. Suppose a situation in which a receiver and two transmitters, one close to the receiver, the other far away are placed. If both transmitters transmit simultaneously at equal powers, then the receiver will receive more power from the nearer transmitter. Since one transmission's signal is the other's noise, the signal-to-noise ratio (SNR) for the farther transmitter is much lower. This makes the farther transmitter more difficult to understand. If the nearer transmitter transmits a signal that is orders of magnitude higher than the farther transmitter then the SNR for the farther transmitter may be below detectability and the farther transmitter may just as well not transmit. This effectively jams the communication channel. In short, the near-far problem is one of detecting or filtering out a weaker signal amongst stronger signals. For eg: if any two person want to communicate in an empty room then they can speak quietly, but to speak in a crowd both of them have to speak louder.

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