Abstract
We analyze the performance of the clipped orthogonal frequency division multiplexing (OFDM) system in terms of peak power reduction capability and degradation of channel capacity. The clipping is performed on the baseband OFDM signals with and without oversampling, followed by the ideal low-pass filter. First, the effect of the envelope clipping on the peak-to-average power ratio (PAPR) and the instantaneous power of the band-limited OFDM signal is studied. We then discuss the channel capacity of the oversampled and clipped OFDM signals over the additive white Gaussian noise and ideally interleaved Rayleigh fading channels. The capacity is calculated based on the assumption that the distortion terms caused by the clipping are Gaussian. It is shown that the SNR penalty due to the clipping can be considerably alleviated by using optimal coding and reducing the information data rate. The results are justified by the simulation results using near optimal turbo codes.

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