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The improvement in network performance due to the use of smart antennas in UTRA FDD handsets is investigated. A statistical model was derived, from published results, for the performance of a handset having a smart antenna. This model was used in simulations of a UTRA FDD network, and results gathered to identify the benefits of using a smart antenna in a handset compared to using a conventional antenna. It was found that handsets using smart antennas in UTRA FDD networks offer significant performance improvements that can be translated into substantial economic benefits.