We consider transmission over a discrete-time Rayleigh fading channel, in w
hich successive symbols face independent fading, and where neither the tran
smitter nor the receiver has channel state information. Subject to an avera
ge power constraint, we study the capacity-achieving distribution of this c
hannel and prove it to be discrete with a finite number of mass points, one
of them located at the origin. We numerically compute the capacity and the
corresponding optimal distribution as a function of the signal-to-noise ra
tio (SNR), The behavior of the channel at low SNR is studied and finally a
comparison is drawn with the ideal additive white Gaussian noise channel.