This paper investigates the feasibility of Adaptive OFDM (AOFDM) transmissions in co-channel interference limited environments upon invoking the Sample Matrix Inversion (SMI) algorithm. The sub carrier based Signal-to-Noise Ratio (SNR), which can be derived from the SMI algorithm's weights is shown to be in most cases an effective measure for controlling the modulation mode adaptation. A simple pilot based scheme is introduced, which allows channel parameter estimation on an OFDM symbol-by-symbol basis, The system BER performance is shown to be improved by an order of a magnitude due to combining AOFDM with interference suppression.
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