A MIMO channel spatial decorrelation scheme based on semi-definite programming is introduced. As a particular application example, the paper addresses the potential gain of using multiple antennas and MIMO-OFDM techniques in order to increase the bandwidth efficiency in satellite communication systems. In particular, we consider the increase in channel capacity that is possible by exploiting satellite and polarization diversity. A fundamental case is studied with three satellite branches, and where each transmit/receive antenna unit consists of six elemental electric and magnetic dipoles yielding six distinguishable parallel polarization channels per frequency. The numerical examples show that capacity increases linearly on a logarithmic signal-to-noise ratio scale where the constant of proportionality is the number of active parallel channels. In this respect, the simultaneous use of triple electric and triple magnetic dipoles has the potential to triple the capacity of an antenna system based on antenna units of single dipoles. Copyright (c) 2006 John Wiley & Sons, Ltd.