Prediction of fading envelopes with diffuse spectra

We show how to compute the minimum mean squared prediction error of a mobile-radio fading envelope modeled as a stationary process arising from a diffuse set of local scatterers. Our approach reduces the prediction problem to an eigenvalue decomposition, and is appropriate when the prediction is to be based on error-corrupted estimates of a narrowband fading process. Such prediction can improve the performance of adaptive modulation techniques that require up-to-date channel-state information for optimal performance.