We present a new upper bound on capacity for multiple-input multiple-output (MIMO) wireless fading channels which is more general and realistic than previous capacity expressions. By including spatial information at the antenna arrays we derive a closed form upper bound on capacity which uses the physics of signal propagation combined with statistics of the scattering environment. This expression gives the capacity of a MIMO system in terms of antenna placement and scattering environment and leads to valuable insights into the factors determining capacity for a wide range of scattering models.
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