The invention concerns generally the technology of reducing frequency offset in a radio receiver. Especially the invention concerns receivers where a channel estimator is used for correcting the base band signal. The objects of the invention are achieved by monitoring the phase of the channel estimation output and generating a complex phasor on the basis of successive phase values. The received baseband signal is then multiplied by the generated complex phasor for compensating the frequency offset. The frequency compensation can be made before or after said channel estimation thus producing a feedback compensation or feed forward compensation. The feedback compensation can be implemented by compensating the baseband signal either prior to the despreading or after the despreading.