Since Bluetooth operates in the unlicensed ISM band that is also used by other devices such as 802.11 networks, baby monitors, garage door openers, microwave ovens etc, there is possibility of interference.
Bluetooth uses Frequency Hop Spread Spectrum (FHSS) to avoid any interference. A Bluetooth channel is divided into time slots each 625 micro second in length. The devices hop through these timeslots making 1600 hops per second. This trades bandwidth efficiency for reliability, integrity and security.
Bluetooth radios operate in the unlicensed ISM band at 2.4 Gigahertz using 79 channels between 2.402 GHz to 2.480 GHz (23 channels in some countries) The range for Bluetooth communication is 0-30 feet (10 meters) with a power consumption of 0dBm (1mW). This distance can be increased to 100 meters by amplifying the power to 20dBm. The Bluetooth radio system is optimized for mobility.
Bluetooth supports two kinds of links: Asynchronous Connectionless (ACL) links for data transmission and Synchronous Connection oriented (SCO) links for audio/voice transmission. The gross Bluetooth data rate is 1 Mbps while the maximum effective rate on an asymmetric ACL link is 721 Kbps in either direction and 57.6 Kbps in the return direction. A symmetric ACL link allows data rates of 432.6 Kbps. Bluetooth also supports up to three 64Kbps SCO channels per device. These channels are guaranteed bandwidth for transmission.