A peak cancellation apparatus is included in a base station transmission unit to cancel the peak component of the peak signal. Thus, the base station transmission unit can be implemented with a lower capacity power amplifier. In addition, an existing power amplifier can be replaced with a low-priced power amplifier, so that an expense can be reduced. Moreover, since only the digital signal having the limited PAR is used, the degradation of the signal quality caused in conversion of the digital signal to the analog signal can be prevented. The peak cancellation apparatus includes a peak cancellation unit positioned between a multiplier and a pulse shaping filter or between the pulse shaping filter and a D/A converter and removing a peak component of the peak signal.