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This paper proposes a space-time block code with temporal and spatial modulation to increase spectral efficiency with low decoding complexity. Compared to the conventional space-time block code with spatial modulation (STBC-SM) that transmits Alamouti's STBC symbols with the combinations of the transmission antennas, the proposed STBC-SM further expands the transmission time slots. The transmitter of the proposed STBC-SM has three antennas and uses three time slots for transmitting STBC symbols whereas that of the conventional STBC-SM uses two time slots. In this paper, the validity of the proposed STBC-SM is confirmed by the numerical evaluation in terms of the bit error rate and the spectral efficiency. The results show the proposed STBC-SM can improve the spectral efficiency and the bit error rate of the conventional STBC-SM.