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This paper analyzes the performance of the adaptive modulation system over Nakagami-m fading channels, which utilizes four modulation modes. The optimization criterion of the setting of the modulation switching levels is to maintain the target BER which is desired by many data services. Under this condition, the performance analysis of the throughput and the transmission outage probability of the adaptive modulation system are presented. We do so by adopting the numerical analysis methods. Finally, the simulation results show that the adaptive modulation system can theoretically achieve good performance with high throughput and low transmission outage probability.