A communication system includes: a covariance module configured to calculate a joint-covariance based on a receiver signal for communicating a communication content in a transmitter signal with an interference signal using subcarriers based on a space-frequency block-coding scheme; a preparation module, coupled to the covariance module, configured to generate a joint-whitener with a control unit based on the joint-covariance for randomizing the interference signal; a joint whitening module, coupled to the preparation module, configured to generate a joint-whitening output based on the receiver signal and the joint-whitener; a message processing module, coupled to the joint whitening module, configured to determine a joint-estimation feedback based on the joint-whitening output; and a cancellation module, coupled to the message processing module, configured to cancel the joint-estimation feedback from the receiver signal for communicating the communication content with a device.