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This paper discusses the analysis and simulation of a technique for combating the effects of multipath propagation and cochannel interference on a narrow-band digital mobile channel. This system uses the discrete Fourier transform to orthogonally frequency multiplex many narrow subchannels, each signaling at a very low rate, into one high-rate channel. When this technique is used with pilot-based correction, the effects of flat Rayleigh fading can be reduced significantly. An improvement in signal-to-interference ratio of 6 dB can be obtained over the bursty Rayleigh channel. In addition, with each subchannel signaling at a low rate, this technique can provide added protection against delay spread. To enhance the behavior of the technique in a heavily frequency-selective environment, interpolated pilots are used. A frequency offset reference scheme is employed for the pilots to improve protection against cochannel interference.