A base station includes first and second antenna arrays for receiving first and second rotational polarizations, and a polarization diversity receiver connected to the first and second antenna arrays for processing respective first and second receive signals from a mobile station to generate an enhanced quality output receive signal based upon polarization diversity reception. Polarization isolation between the transmit and receive antenna elements may also provided by having a first plurality of transmit antenna elements for the second polarization mounted on a substrate carrying the first receive antenna elements. The second antenna array includes a second plurality of antenna elements of second polarization on a substrate carrying the second receive antenna elements. To achieve polarization diversity gain at the mobile station, the base station preferably further includes an alternating polarization transmitter for alternately transmitting signals at respective alternating first and second rotational polarizations. Method aspects of the invention are also disclosed.
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