We discuss the capacity of quantum channels for information transmissi
on and storage. Quantum channels have dual uses: they can be used to t
ransmit known quantum states which code for classical information, and
they can be used in a purely quantum manner, for transmitting or stor
ing quantum entanglement. We propose here a definition of the von Neum
ann capacity of quantum channels, which is a quantum-mechanical extens
ion of the Shannon capacity and reverts to it in the classical limit.
As such, the von Neumann capacity assumes the role of a classical or q
uantum capacity depending on the usage of the channel. In analogy to t
he classical construction, this capacity is defined as the maximum von
Neumann mutual entropy processed by the channel, a measure which redu
ces to the capacity for classical information transmission through qua
ntum channels (the ''Kholevo capacity'') when known quantum stares are
sent. The quantum mutual entropy fulfills all basic requirements for
a measure of information, and observes quantum data-processing inequal
ities. We also derive a quantum Fano inequality relating the quantum l
oss of the channel to the fidelity of the quantum code. The quantities
introduced are calculated explicitly for the quantum depolarizing cha
nnel. The von Neumann capacity is interpreted within the context of su
perdense coding, and an extended Hamming bound is derived that is cons
istent with that capacity. [S1050-2947(97)04511-3].