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Base station polarization diversity reception in which signals are received by dual polarization (ex. ±45° polarization) is discussed. A theoretical analysis is presented on correlation coefficient ρ between diversity branches, and received signal level decrease L caused by polarization difference at the base and mobile station. The generalized expressions of ρ and L are then derived. Measurements were also carried out at 900 MHz in an urban area. Consequently, it was found that the ρ and L values are expressed by three factors, ρ is lower than 0.6 and L is smaller than 2.5 dB. It is concluded that this polarization diversity reception can be used as an effective diversity reception.