In this work, a developed mobile channel model has been designed, which can be used to generate SISO, SIMO, MISO, and MIMO Rayleigh fading channels. Then, Selection Combining (SC), Equal Gain Combining (EGC), and Maximal Ratio Combining (MRC) techniques have been studied and analyzed for receiving diversity (SIMO system). Furthermore, maximal ratio has been studied for transmitting diversity (MISO system), which is known as Maximal Ratio Transmission (MRT). On the other hand, the performance of diversity based on MIMO system by using, Zero Forcing (ZF), and Minimum Mean Square Error (MMSE) techniques have been studied and
tested. In addition to that, Space-Time Block Codes (STBC) have been studied and analyzed for both MISO and MIMO systems. Finally, comparisons between SISO, SIMO, MISO and MIMO systems, in terms of channel capacity, have been studied and analyzed under different cases and channel conditions.