Link adaptation, comprising adaptive coding and modulation (ACM) and others (such as Power Control), is a term used in wireless communications to denote the matching of the modulation, coding and other signal and protocol parameters to the conditions on the radio link (e.g. the pathloss, the interference due to signals coming from other transmitters, the sensitivity of the receiver, the available transmitter power margin, etc.). For example, WiMAX uses a rate adaptation algorithm that adapts the modulation and coding scheme (MCS) according to the quality of the radio channel, and thus the bit rate and robustness of data transmission. The process of link adaptation is a dynamic one and the signal and protocol parameters change as the radio link conditions change—for example in High-Speed Downlink Packet Access (HSDPA) in Universal Mobile Telecommunications System (UMTS) this can take place every 2 ms.

Adaptive modulation systems invariably require some channel state information at the transmitter. This could be acquired in time-division duplex systems by assuming the channel from the transmitter to the receiver is approximately the same as the channel from the receiver to the transmitter. Alternatively, the channel knowledge can also be directly measured at the receiver, and fed back to the transmitter. Adaptive modulation systems improve rate of transmission, and/or bit error rates, by exploiting the channel state information that is present at the transmitter. Especially over fading channels which model wireless propagation environments, adaptive modulation systems exhibit great performance enhancements compared to systems that do not exploit channel knowledge at the transmitter.