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Space-time block coding (STBC) is a promising spatial diversity technique for future wireless communications systems. The combination of STBC and wideband code division multiple access (WCDMA) technology has the potential to increase users performance in wireless communication networks. In the downlink of WCDMA systems, multiple access interference (MAI), which impairs system performance, can be mitigated by chip level channel equalization. In this paper, we have proposed to combine chip level STBC (CSTBC) (I. R. S. Casella et al., 2003) and equalization pos-combining with channel estimation (EPCCE) scheme (2003) for improving diversity and system robustness to frequency selective fading channels. Additionally, we present a new iterative channel estimation (ICE) algorithm to reduce inter-antenna interference (IAI), due to multiple antennas transmissions, and improving space-time block decoding at the receiver when the number of training symbols is limited.