A method of two-layer (Rank=2) demodulation reference signal (DMRS) based transmission scheme is proposed. The precoding matrix on a data RE can be represented as A×B. The precoding matrix on the UE-specific reference signal DMRS is A. Matrix B is the co-phasing cycling matrix. By applying the proposed co-phasing cycling matrix B for Rank=2 DMRS-based transmission scheme, the ratio of PDSCH EPRE to DMRS EPRE is equal to 0 dB, as required by the LTE specification. Further, when the DMRS power follows the precoding matrix A, UE channel estimation performance is improved.