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Bit-interleaved coded modulation with iterative decoding (BICM-ID) and orthogonal frequency-division multiplexing (OFDM) have recently been considered separately to improve the error performance and/or spectral efficiency of communication systems disturbed by impulsive noise. Given the advantages of these two techniques, this paper proposes a novel combination of them in one system. The key feature of the proposed system, termed BI-COFDM-ID, is the iterative processing at the receiver where information exchange is carried out between the OFDM demodulator and the channel decoder. Results show that BI-COFDM-ID outperforms all the previously-proposed techniques at high signal-to-noise ratio (SNR) region and therefore it is attractive for applications that require high spectral efficiency and low bit error rate (BER).