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Optimal Diversity-Multiplexing Tradeoff in Multiple Antenna Channels Lizhong Zheng David N.C. Tse Department of Electrical Engineering and Computer Sciences University of California Berkeley, CA 94720, USA lzheng,dtse@eecs.berkeley.edu Abstract Multiple antennas can be used for increasing the amount of diversity or the number of degrees of freedom in wireless communication systems. In this paper, we propose the point of view that both types of gains can be simultaneously obtained for a given multiple antenna channel, but there is a fundamental tradeoff between how much of each any coding scheme can get. We give a simple characterization of this tradeoff and use it to evaluate the performance of existing multiple antenna schemes. 1 Introduction Multiple antennas are an important means to improve the performance of wireless sys- tems. Traditionally, multiple antennas have been used to increase diversity to combat channel fading. By having multiple independently faded replicas at the receiver for each data symbol, more reliable reception is achieved. For example, to get a diversity gain (advantage) of in a slow Rayleigh fading environment, one can use receive antennas: it is well known that the average error probability can be made to decay like 1SNR at high SNR. More recent work has concentrated on coding for transmit diversity (some examples are space-time codes [4, 10] and orthogonal designs [1, 11]). Transmit or receive diversity is a means to combat fading. A different line of thought suggests that in a system with multiple transmit and receive antennas (MIMO channel), fading can in