A method generates signals in a transmitter of a multiple-input, multiple-output wireless communications system. The transmitter includes Nt transmit antennas. A transmit covariance matrix Rt determined using statistical state information of a channel. The transmit covariance Rt matrix is decomposed using transmit eigenvalues Λt to obtain a transmit eigenspace Ut according to Rt=UtΛtU†t, where † is a Hermitian transpose. A pilot eigenspace Up is set equal to the transmit eigenspace Ut. A Nt×Tp block of pilot symbols Xp is generated from the pilot eigenspace Up and pilot eigenvalue Λp according to Xp=UpΛp1/2. A data eigenspace Ud is set equal to the transmit eigenspace Ut. In addition, a Nt×Nt data covariance matrix Qd is generated according to UdΛdU†d, where Λd are data eigenvalues. A Nt×Td block of data symbols is generated, such that an average covariance of each of the columns in the block of data symbols Xd equals the data covariance matrix Qd. The block of pilot and data symbols form the signals to be transmitted.