MIMO capacity with interference

System capacity is considered for a group of interfering users employing single-user detection and multiple transmit and receive antennas for flat Rayleigh-fading channels with independent fading coefficients for each path. The focus is on the case where there is no channel state information at the transmitter, but channel state information is assumed at the receiver. It is shown that the optimum signaling is sometimes different from cases where the users do not interfere with each other. In particular, the optimum signaling will sometimes put all power into a single transmitting antenna, rather than divide power equally between independent streams from the different antennas. If the interference is either sufficiently weak or sufficiently strong, we show that either the optimum interference-free approach, which puts equal power into each antenna, or the approach that puts all power into a single antenna is optimum and we show how to find the regions where each approach is best.