In this paper, performance of a direct-sequence code-division multiple-acce
ss (DS-CDMA) system in an overlaid cell environment using a decision feedba
ck equalizer (DFE) receiver is presented. It is shown that a DFE receiver c
an separate the desired signal from several interfering signals without any
loss in the overall capacity, The results indicate that DS-CDMA with a DFE
receiver can be used to integrate dual-rate services without adversely aff
ecting the system capacity. The overall system capacity is shown to be appr
oximately equal to half the spreading gain and is unaffected when interfere
rs at different data rates are present. The proposed scheme needs only aver
age power control and is not found to be sensitive to power control errors
of +/-2 dB.