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Software Defined Radio (SDR) may provide flexible, upgradeable and longer lifetime radio equipment for the military and for civilian wireless communications infrastructure. SDR may also provide more flexible and possibly cheaper multi-standard-terminals for end users. It is also important as a convenient base technology for the future context-sensitive, adaptive and learning radio units referred to as cognitive radios. SDR also poses many challenges, however, some of them causing SDR to evolve slower than otherwise anticipated. Transceiver development challenges include size, weight and power issues such as the required computing capacity, but also SW architectural challenges such as waveform application portability. SDR has demanding implications for regulators, security organizations and business developers.