A method and apparatus for increasing the capacity of present and future satellite communication systems transmits signals from correspondent pairs of earth stations simultaneously in channels that have at least a partial overlap in bandwidth. Each receiver at each earth station subtracts from the received composite signal the portion of the composite signal which was transmitted by the receiving earth station. This leaves a desired signal which corresponds to the signal transmitted by the other earth station of the correspondent pair and which is then demodulated. Each receiver at each earth station thus reconstructs an estimated target signal which has the amplitude, delay, frequency and phase of the signal as transmitted from the earth station and retransmitted by the satellite. The reconstructed target signal provides a very precise estimate of the portion of the composite signal transmitted by the earth station. The reconstructed target signal estimate is provided by repeated correlations of known signals against signals which are only partially known in order to produce an output which can be filtered to eliminate further parameters. The further parameters are put back into the estimation process, and said portion of the composite signal is regenerated in this manner of iteration.