The invention relates to a data transmission method in a cellular radio system, and a cellular radio system, which comprises in each cell at least one base station (200), and a number of subscriber terminal equipments (202-206) connected to one or more base stations, the transmitter of said system comprising means (404) for multiplying the signal of each user by more than one pseudorandom sequences. For enabling a high spectral efficiency and advantageous interference cancellation, the transceiver of the system comprises means (404) for multiplying the signal of the user by more than one pseudorandom sequence, the data transfer rate of the signal substantially remaining the same. The transmitter further comprises means (404, 410, 402) for transmitting the signals of different users multiplied by the same pseudorandom sequences distinguished from each other by means of time-division.