Two arrays with M and N elements are connected via a scattering medium givi
ng uncorrelated antenna signals. The link array gain relative to the case o
f one element at each end is treated for the situation where the channels a
re known at the transmitter and receiver. It is shown that the maximum mean
gain achieved through adaptive processing at both the transmitter and the
receiver is less than the free space gain, and cannot be expressed as a pro
duct of separate gains, First, by finding the singular values of the transm
ission matrix, fundamental limitations concerning the maximum gain and the
diversity orders are given, indicating that the gain is upper hounded by (r
ootM + rootN)(2) and the diversity order is MN. Next an iterative technique
for reciprocal channels which maximizes power at each stage transmitting b
ack and forth is described. The capacity or spectral efficiency of the rand
om channel is described, and it is indicated how the capacity is upper boun
ded by N parallel channels of gain M(N < M) for large values of N and M.