A bidirectional signal processing method uses parallel transmission of
digital transmitted data streams in a multiple input-multiple output
system. Related art methods generate high bit error rates mostly in
singular transmission channels. For this reason, the rank-adaptive signal
processing method provides that the number n.sub.d of active subchannels
are varied according to the actual channel behavior in order to effect a
robust data transmission even in singular radio channels based on a
transmit-side and receive-side channel knowledge and a modification of
the data vector by a linear matrix vector multiplication while
introducing a factor gamma for limiting the maximum transmit power. The
maximum transmit power is then only distributed to the currently
activated subchannels so that no transmit power remains unused. Another
optimization of the number of subchannels n.sub.d occurs when selecting
the modulation and encoding methods. During the optimal rank-adaptation
according to the water-filling principle, another power is allocated to
each subchannel. Another modulation and encoding method is accordingly
selected for each data stream. During the suboptimal rank-adaptation
according to the channel inversion principle, all subchannels have the
same power whereby enabling the data streams to be modulated and encoded
in a common source.