Think of the algorithms sitting in the base band of your cell phone. They implement things like modulation, hand-offs, power control, etc. E.g. there is some algorithm that controls the transmit power of your device to maintain the minimal transmit power necessary to close the link to the base station while you move around, walk into buildings, etc. There's another algorithm that tries to optimize hand-offs as you go from one cell site to another. Etc. These algorithms are very expensive to develop because: 1) you need very expensive people (PhD's with decades of experience) to work on them; and 2) getting them right takes a ton of experimentation and tuning with real equipment in a variety of physical scenarios.