In this paper, we propose a novel rate adaptive Base Station (BS) switch on-off algorithm that employs Spatial Modulation (SM) and traditional Multiple-Input Multiple-Output (MIMO). We consider a cluster of BSs and based on the required average data rate, our algorithm selects the most energy efficient scheme between SM and MIMO with only Channel State Information at the Receiver (MIMO-CSIR). In order to further increase the Energy Efficiency (EE) (in bits/J), we activate or deactivate BSs in conjunction to switching between different transmission modes (SM or MIMO-CSIR). In both cases, we ensure that the User Terminals (UTs) do not face a reduction in Quality-of-Service (QoS) in the sense of ergodic capacity. Using the fundamental limit of Shannon capacity and a BS power model, we show that the use of SM, in such an algorithm, offers significant EE improvements. Finally, we demonstrate simulation results which show that, depending on the required average data rate, our algorithm achieves the same or better EE compared to the employed benchmark systems.
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