The problem of meeting the proliferating demands for mobile telephony within the confinements of the limited radio spectrum allocated to these services is addressed. A multiple beam adaptive base-station antenna is proposed as a major system component in an attempt to solve this problem. This novel approach is demonstrated here by employing an antenna array capable of resolving the angular distribution of the mobile users as seen at the base-station site, and then using this information to direct beams toward either lone mobiles, or groupings of mobiles, for both transmit and receive modes of operation. The energy associated with each mobile is thus confined within the addressed volume, greatly reducing the amount of co-channel interference experienced from and by neighboring co-channel cells. In order to ascertain the benefits of such an antenna, a theoretical approach is adopted which models the conventional and proposed antenna systems in a typical mobile radio environment. For a given performance criterion, this indicates that a significant increase in the spectral efficiency, or capacity, of the network is obtainable with the proposed adaptive base-station antenna. © 1990 IEEE