Multiple-input multiple output (MIMO) communication architecture has recent
ly emerged as a new paradigm for wireless communications in rich multipath
environment, which has spectral efficiencies far beyond those offered by co
nventional techniques. Channel capacity of the MIMO architecture in indepen
dent Rayleigh channels scales linearly as the number of antennas. However,
the correlation of a real-world wireless channel may result in a substantia
l degradation of the MIMO architecture performance. In this letter, we inve
stigate the MIMO channel capacity in correlated channels using the exponent
ial correlation matrix model. We prove that, for this model, increase in co
rrelation is equivalent to decrease in signal-to-noise ratio (SNR). For exa
mple, r = 0.7 is the same as 3-dB decrease in SNR.