9361690 Jacobsmeyer This project is funded under the National Science Foundation's (NSF) Small Business Innovation Research (SBIR) program, which is designed to provide an opportunity for small business, particularly the small high technology firm, to participate in NSF research. Phase I of the SBIR program serves as a filter to select promising proposals and determine if the firm can do high quality research. Phase II is the principal research project. Phase III is the conversion of the NSF-funded research into commercial applications and technological innovation supported by follow-on private venture capital or other non-federal financing. The focus of this Phase I project is to investigate a new adaptive technique for code division multiple access (CDMA) channels that will increase digital cellular capacity. The technique automatically and dynamically adjusts each user's data rate to the instantaneous fading and interference conditions of the CDMA channel. The research objectives are to model the channel, simulate the technique, and demonstrate performance improvements in throughput and blocking probability. Throughput improvements of a factor of 5 and reductions in blocking probability of a factor of 4 appear possible.