An interleaved fading channel whose state is known to the receiver is analyzed. The reliability function <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">E(R)</tex> is obtained for rates <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">R</tex> in the range <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">R_c ≤ R ≤ C</tex> . The capacity is shown to be <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">C = E_A \{ 1/2 ln (1 + A^2 n)\}</tex> where <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">A</tex> is a factor describing the fading mechanism and <tex xmlns:mml="http://www.w3.org/1998/Math/MathML" xmlns:xlink="http://www.w3.org/1999/xlink">u</tex> is the signal-to-noise ratio per dimension.
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T. Ericson (1970) studied this question.
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