Hidden Markov models (HMM's) are a powerful tool for modeling stochastic ra
ndom processes. They are general enough to model with high accuracy a large
variety of processes and are relatively simple allowing us to compute anal
ytically many important parameters of the process which are very difficult
to calculate for other models (such as complex Gaussian processes). Another
advantage of using HMM's is the existence of powerful algorithms for fitti
ng them to experimental data and approximating other processes, In this pap
er, we demonstrate that communication channel fading can be accurately mode
led by HMM's, and we find closed-form solutions for the probability distrib
ution of fade duration and the number of level crossings.