Great question! The short answer to the first question is yes. The layer 1, or the physical layer, involves a lot of signal processing algorithms. On the physical layer, signal processing operations such as (de-)modulation, channel estimation, and equalization are performed. In addition to this, there is a lot of control logic around, so it is for example not necessary to know all the deep details of wireless communication systems to work in layer 1 software development. For example, I am working with people with various technical backgrounds. However, previous domain knowledge of course helps one blend in.
Having a signal processing background myself, I have found the tasks involving signal processing the most interesting ones to work with. It is a nice feeling, when I observe that I was able to use my knowledge and skills to overcome a challenge or solve a problem. In addition, because the systems are very complex, sophisticated, and ever-evolving, I can always find new things to learn. And interesting things are happening also on the control logic side. I have worked with some bigger features in that area, and I can say that they have taught me quite many good programming practices and such things.
When it comes to job interviews, I can hardly give a good overall picture but I can speak from my experience. I think the exact format and content of the interviews might change depending on the interviewer, the applicant's background, and the specific role in question. For me, I was applying to an entry-level software developer position and I was interviewed by a line manager and a technical expert from the department. I remember that I was asked some technical questions and I explained some things from my study and work background as well to show what kind of skills I had collected. However, the interview was not a knowledge check in any way, but rather in a form of a discussion. I think in general the interviewers are not so interested in the exact knowledge that the job applicant has, but rather their ability to adapt, learn, and become a member of the work community. However, I could imagine that the amount of technical questions increases when interviewing applicants for technical roles with higher seniority.
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