There are several layers of complexity here. I’m trying to rank them in order.
1. Sampling, encoding and saving of a signal, which might have already happened when you play music from a memory. The receiver’s part here would be decoding, amplifying and outputting the audio signal on the speakers.
2. chopping and encoding the data to fit Bluetooth’s transmission protocoll. The receiver’s part here is decoding and interpreting the instructions received, e.g. is it an mp3 file?, is it a picture?, is it a live phone call? etc.
3. FM modulating that encoded signal onto the radio channel and sending it. The receivers part here is, well, receiving and demodulating it.
4. Bluetooth is just a transmission protocoll that sender and receiver must agree on. It uses certain frequency bands, encoding and modulation algorithms. Since more and more applications become Bluetooth compatible, it became somewhat of a standard and more manufacturers of data systems implement this feature in their devices.
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