A method is provided of transmitting signals from two or more antennas in
a wireless telecommunications network, in which at least one data
sequence is space-time block encoded. Before transmitting the data
sequence, a linear transformation is applied to the data sequence, the
linear transformation being adapted to use knowledge of correlation among
the antennas to at least partially compensate the transmitted signals for
said correlation. The linear transformation depends on the eigenvalues of
an antenna correlation matrix. The linear transformation further depends
on a ratio of symbol energy (E.sub.s) to noise variance (.sigma..sup.2).
The method includes transmitting the encoded and transformed data
sequence.