We now consider the case where the CSI g[i] is known to the receiver at time i. Equivalently,<br>γ [i] is known to the receiver at time i. We also assume that both the transmitter and receiver<br>know the distribution of g[i]. In this case there are two channel capacity definitions that are<br>relevant to system design: Shannon capacity, also called ergodic capacity, and capacity with<br>outage. As for the AWGN channel, Shannon capacity defines the maximum data rate that<br>can be sent over the channel with asymptotically small error probability. Note that for Shannon capacity the rate transmitted over the channel is constant: the transmitter cannot adapt its<br>transmission strategy relative to the CSI. Thus, poor channel states typically reduce Shannon<br>capacity because the transmission strategy must incorporate the effect of these poor states.<br>An alternate capacity definition for fading channels with receiver CSI is capacity with outage. This is defined as the maximum rate that can be transmitted over a channel with an<br>outage probability corresponding to the probability that the transmission cannot be decoded<br>with negligible error probability. The basic premise of capacity with outage is that a high<br>data rate can be sent over the channel and decoded correctly except when the channel is in a104 CAPACITY OF WIRELESS CHANNELS<br>slow deep fade. By allowing the system to lose some data in the event of such deep fades,<br>a higher data rate can be maintained than if all data must be received correctly regardless of<br>the fading state, as is the case for Shannon capacity. The probability of outage characterizes<br>the probability of data loss or, equivalently, of deep fading
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