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Wireless cellular systems are known to suffer from various sources of interference, such as multiple access interference (MAI) and intersymbol interference (ISI) caused by multipath propagation. The interference may degrade the system performance significantly. Therefore, simple and effective interference suppression techniques are required to mitigate the interference for high quality signal reception. The paper describes a frequency domain MIMO interference cancellation (1C) technique which facilitates space division multiple access (SDMA) for space-time block-coded single-carrier systems without increasing the complexity seriously. Using this method, the spectrum efficiency (bit/sec/Hz) can be doubled in up- and downlink while full diversity gain is guaranteed for both users. The investigated system employs QPSK with 20.48 Mbit/s. By means of link-level simulations in real-world-like propagation environments, the resulting cellular performance is analyzed.