In the method and system, a transmitter demultiplexes an input data stream into M substreams, where each of the M substreams have a data rate lower than a data rate of the input data stream. The substreams are transmitted as signals from a transmit array of M antennas to be received by a receiver array at a receiver in the system, based on a set of transmission parameters. The transmitter adjusts at least one of the transmission parameters based on a condition experienced by the receiver so as to increase data throughput in the system. The adjustable parameters include the number of antennas to employ, the on/off patterns for the antennas, and eigenmode values for the antennas used in order to determine transmit power. Accordingly, system data throughput may be improved while maintaining transmit power and system bandwidth constant.