A virtual beam system operating in an environment, including a non-compatible receiver, includes a transmitting subsystem and a receiving subsystem. The transmitting subsystem includes an array of transmitting elements and an element position encoded composite signal generator for generating an element position encoded composite signal. The array of transmitting elements is operatively coupled to the signal generator. The transmitting subsystem radiates the element position encoded composite signal via the array of transmitting elements. The receiving subsystem is responsive to the element position encoded composite signal and includes a receiving element and an element position encoded composite signal decoder for decoding the element position encoded composite signal. The receiving element is operatively coupled to the signal decoder. The element position encoded composite signal appears to be radiated as a wide beam, with relatively low directive gain, when received and decoded by the non-compatible receiver. Conversely, the element position encoded composite signal appears to be radiated as a narrow beam, with relatively high directive gain, when received by the receiving element and decoded by the signal decoder of the receiving subsystem.