We analyze the performance of truncated power control in a code-division mu
ltiple-access (CDMA) communication system. This power control scheme compen
sates for propagation gain above a certain cutoff fade depth: below the cut
off level, data transmission is suspended, We assume a channel with fast Ra
yleigh fading and slow lognormal shadowing plus path loss, where truncated
power control is applied to the shadowing plus path loss and a RAKE receive
r combines the Rayleigh fading multipath components separated by more than
a chip time. We find that truncated power control exhibits both a power and
capacity gain. These performance improvements result from the fact that wi
th truncated power control, less power is wasted compensating for deep fadi
ng, and mobiles on the cell boundaries cause less interference to adjacent
cells. We find that truncated power control is most effective for channels
with large power fluctuations or with large background noise.