The invention relates to a radio communication system and method for minimizing co-channel interference. The system and method employ a matrix processor to separate signals received from, or transmitted to, a plurality of mobile units. The coefficients of the matrix are chosen to minimize interference between channels, and are adjusted periodically to account for changes in the mobile units using the system. The system and methods are applicable to, for example, landmobile communication, satellite communications system and hybrids thereof. In one embodiment, the system rotates the allocation of Digital Voice Color Codes and sector radiation patterns in opposite directions to maintain the same color code in the same absolute direction.