International Telemetering Conference Proceedings / October 25-28, 1999 / Riviera Hotel and Convention Center, Las Vegas, Nevada / In this paper, a hybrid frequency division multiple access/code division multiple access (FDMA/CDMA) system in a Rician fading channel is described and analysis. The performance of the hybrid system is compared with a wideband CDMA system, which occupies the same total bandwidth. The results show that for DPSK modulation with a RIKE receiver, a hybrid system can have a greater capacity with a strong direct path component or a high signal to noise ratio (SNR). Otherwise, a wideband system remains optimal.