Bluetooth and Wi-Fi have slightly different applications in today's offices, homes, and on the move: setting up networks, printing, or transferring presentations and files from PDAs to computers. Both are versions of unlicensed spread spectrum technology.

Bluetooth differs from Wi-Fi in that the latter provides higher throughput and covers greater distances, but requires more expensive hardware and higher power consumption. They use the same frequency range, but employ different multiplexing schemes. While Bluetooth is a cable replacement for a variety of applications, Wi-Fi is a cable replacement only for local area network access. Bluetooth is often thought of as wireless USB, whereas Wi-Fi is wireless Ethernet, both operating at much lower bandwidth than the cable systems they are trying to replace. However, this analogy is not entirely accurate since any Bluetooth device can, in theory, host any other Bluetooth device—something that is not universal to USB devices, therefore it would resemble more a wireless FireWire.

Bluetooth exists in many products, such as phones, printers, modems and headsets. The technology is useful when transferring information between two or more devices that are near each other in low-bandwidth situations.

Wi-Fi is more like traditional Ethernet networks, and requires configuration to set up shared resources, transmit files, and to set up audio links (for example, headsets and hands-free devices). It uses the same radio frequencies as Bluetooth, but with higher power output resulting in a stronger connection. Wi-Fi is sometimes called "wireless Ethernet."