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Generally limited feedback systems that multiplex multiple user signals are noise power limited in the low signal-tonoise- ratio (SNR) regime and interference power limited in the high SNR regime. If the amount of feedback does not grow with SNR, then there is a sum rate ceiling that increasing the transmit power alone cannot surpass. This paper proposes a simple dual mode system where the base station serves either one user or as many users as the number of transmit antennas. The switching mechanism is smooth and is based on instantaneous system conditions. The mobile determines its preferred transmission mode by using a very simple signal-to-interference-and-noiseratio (SINR) threshold. Based on the mobiles' feedback, the base station chooses the method of signalling accordingly. With a finite number of feedback bits per mobile, it is shown that the proposed system achieves close to the maximum of the sum-rate for single user and multiuser modes. We identify the preferrable mode for an asymptotically large number of users and/or SNR. This proposed architecture is suitable for systems with moderate coherence time, a moderate to large number of users, and a moderate SNR that cannot afford complex processing at the base station or at the mobile.