We study channel capacity when a one-bit quantizer is employed at the output of the discrete-time average-power-limited Rayleigh-fading channel. We focus on the low signal-to-noise ratio regime, where communication at very low spectral efficiencies takes place, as in Spread Spectrum and Ultra-Wideband communications. We demonstrate that, in this regime, the best one-bit quantizer does not reduce the asymptotic capacity of the coherent channel, but it does reduce that of the noncoherent channel.
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