Physical layers of communication systems using Filter Bank Multicarrier (FBMC) as a modulation scheme provide low out-of-band leakage but suffer from the large Peak-to-Average Power Ratio (PAPR) of the transmitted signal. Two special FBMC schemes are investigated in this paper: the Orthogonal Frequency Division Multiplexing (OFDM) and the Staggered Multitone (SMT). To reduce the PAPR of the signal, time domain clipping is applied in both schemes. If the clipping is not compensated, the system performance is severely affected. To avoid this degradation, an iterative noise cancelation technique, Bussgang Noise Cancelation (BNC), is applied in the receiver. It is shown that clipping can be a good means for reducing the PAPR, especially for the SMT scheme. A novel modified BNC receiver is presented for SMT. It is shown how this technique can be implemented in real-life applications where special requirements must be met regarding the spectral characteristics of the transmitted signal. 1. Introduction In wireless communications the frequency spectrum is an essential resource. As the unlicensed spectrum is used by an increasing number of devices, the possibility of communication collision is increasing. To avoid this collision, two solutions are possible: extending the frequency limits higher to unused frequency bands at the upper end of the spectrum or reaggregating the densely used licensed frequency bands. Both ideas have disadvantages: the use of higher frequencies requires expensive specially designed analog devices; the reuse of the spectrum calls for complex, intelligent, and adaptive systems. In this paper the focus is on the reuse of the spectrum with multicarrier modulations tailored for spectrally efficient applications. Future applications operating in the licensed bands, for example, cognitive radios, favor spectrally efficient FBMC schemes with low out-of-band leakage, minimizing harmful interference between devices using adjacent channels. In this paper two subclasses of FBMC are investigated, both allowing the use of a complex modulation alphabet: OFDM and SMT. Both of these schemes provide relatively low out-of-band leakage. Today OFDM [1] is the de-facto standard technique for high-speed wireless data transmission. Using OFDM, low-complexity modulation and demodulation can be performed by the “Inverse Fast Fourier Transform (IFFT)” and the Fast Fourier Transform (FFT), respectively. With Cyclic Prefix (CP), channel equalization can be efficiently implemented in the frequency domain. This scheme also has some drawbacks. As the PAPR of the
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