The two-receiver broadcast packet erasure channel with feedback and memory is studied. Memory is modeled using a finite-state Markov chain representing a channel state. Two scenarios are considered: (i) when the transmitter has causal knowledge of the channel state (i.e., the state is visible), and (ii) when the channel state is unknown at the transmitter, but observations of it are available at the transmitter through feedback (i.e., the state is hidden). In both scenarios, matching outer and inner bounds on the rates of communication are derived and the capacity region is determined. It is shown that similar results carry over to channels with memory and delayed feedback and memoryless compound channels with feedback. When the state is visible, the capacity region has a single-letter characterization and is in terms of a linear program. Two optimal coding schemes are devised that use feedback to keep track of the sent/received packets via a network of queues: a probabilistic scheme and a deterministic backpressure-like algorithm. The former bases its decisions solely on the past channel state information and the latter follows a max-weight queue-based policy. The performance of the algorithms are analyzed using the frameworks of rate stability in networks of queues, max-flow min-cut duality in networks, and finite-horizon Lyapunov drift analysis. When the state is hidden, the capacity region does not have a single-letter characterization and is, in this sense, uncomputable. Approximations of the capacity region are provided and two optimal coding algorithms are outlined. The first algorithm is a probabilistic coding scheme that bases its decisions on the past L acknowledgments and its achievable rate region approaches the capacity region exponentially fast in L. The second algorithm is a backpressure-like algorithm that performs optimally in the long run.
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