A new sub-optimal demodulator based on a singular value decomposition (SVD) for estimation of unitary matrices is introduced for non-coherent communication over the Rayleigh flat fading channel with multiple transmit and receive antennas, where no channel state information (CSI) is available. Codes achieving bit error rate lower than 10/sup -4/ at bit energy over the noise spectral density ratio (E/sub b//N/sub 0/) of 1.7 dB from code restricted capacity limit or of 3.2 dB and higher from a mutual information upper bound of the capacity attaining isotropically random unitary transmit matrices, were found with coding rates of 1.125 to 5.06 bits per channel use, and different modulation decoding complexities. The codes comprise a serial concatenation of turbo code and a unitary matrix differential modulation code. The receiver employs the high performance joint iterative decoding of the turbo code and the modulation code.
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