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In recent years, interest in optical wireless (OW) as a promising complementary technology for RF technology has gained new momentum fueled by significant deployments in solid state lighting technology. This article aims at reviewing and summarizing recent advancements in OW communication, with the main focus on indoor deployment scenarios. This includes a discussion of challenges, potential applications, state of the art, and prospects. Related issues covered in this article are duplex transmission, multiple access, MAC protocols, and link capacity improvements.