We consider the design of power-adaptive systems for minimizing the average bit-error rate over flat fading channels. Channel state information, obtained through estimation at the receiver, is sent to the transmitter over a feedback channel, where it is used to optimally adapt the transmit power. We consider finite-state optimal policies to reflect the limitations of the feedback channel. We develop an iterative algorithm that determines the optimal finite-state power control policy given the probability density function (PDF) of the fading. Next, we present a discretized formulation of the problem and obtain a suboptimal solution via standard dynamic programming techniques. The discretization of the problem enables us to obtain a suboptimal policy for arbitrary fading channels for which the analytic expression of the fading probability density function is not available. Simulation results are used to draw conclusions regarding the effects of limited feedback channel capacity, delay and number of states on the bit-error rate performance of the proposed policies under slow and moderate fading conditions.
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