The invention relates to a radio communication system and method for minimizing co-channel interference. The system comprises a plurality of mobile stations in communication with a ground based station via an orbiting satellite. The orbiting satellite transponds a combination of signals received from the mobile stations to the ground station in coherent fashion. At the ground station, the combined signals are processing using matrix models to separate the plurality of mobile station signals. The coefficients of the matrix are chosen to minimize interference between channels. Communication in the reciprocal direction proceeds in like manner. The system and methods are applicable to, for example, landmobile communication, satellite communications system and hybrids thereof. In the landmobile or satellite communication environment, the system may include directional antennas.