Why is signal modulation important in wireless systems?

Signal modulation is crucial in wireless systems primarily because it enables efficient data encoding and transmission. Modulation involves varying a carrier signal's properties, such as its amplitude, frequency, or phase, to represent the information being sent. This process allows multiple signals to occupy the same channel without interfering with each other, which is essential for the efficient use of limited bandwidth in wireless communication.

By modulating a signal, information can be encoded in a way that is robust to various transmission conditions, such as noise and interference. This adaptability means that data can be transmitted more reliably over longer distances and through different environments, ensuring that the information arrives intact and with minimal loss.

The other options, while they might touch upon aspects of wireless communication, do not capture the core function of modulation as effectively. For instance, while modulation can contribute to reduced transmission costs or signal strength in some contexts, those are not its primary purposes. Additionally, the simplification of network setup is not a direct consequence of modulation; rather, it relates more to the design and architecture of the networks themselves.