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In this study, the authors investigate the first-order finite-state Markov chain modelling of time-varying flat fading channels. The scope of this work is to consider the joint effects of unknown channel phase and amplitude on the received signal. Performance measures such as level crossing rate, steady-state probability, state transition probability and state time duration of the fading models are derived, plotted and analysed. Comparison of the performance measures are made for Rician, Lognormal and Weibull fading distributions.