Spatial Division Multiple Access (SDMA) offers multiplicative spectral efficiency gains in wireless networks. An adaptive SDMA beamforming technique is capable of increasing the traffic throughput of a sector, as compared to a conventional tri-cellular arrangement, by between 4 and 7 times, depending on the environment. This system uses an averaged covariance matrix of the uplink signals received at the antenna array to deduce the downlink beamforming solution, and is equally applicable to Frequency Division Duplex (FDD) and Time Division Duplex (TDD) systems. A scheduling algorithm enhances the SDMA system performance by advantageously selecting the users to be co-scheduled.