CAPACITY OF FADING CHANNELS WITH CHANNEL SIDE INFORMATION

We obtain the Shannon capacity of a fading channel with channel side i nformation at the transmitter and receiver, and at the receiver alone. The optimal power adaptation in the former case is ''water-pouring'' in time, analogous to water-pouring in frequency for time-invariant fr equency-selective fading channels. Inverting the channel results in a large capacity penalty in severe fading.