A method of operation of a communication system includes: determining a channel estimate based on an arriving communication for characterizing a channel; calculating a conditional measure based on the channel estimate for characterizing the channel at a subsequent index; generating a channel-based probability function using the conditional measure, the channel-based probability function based on a feedback metric; determining a stochastic channel indicator based on a value of the feedback metric producing a target condition from the channel-based probability function; and sending the stochastic channel indicator for controlling communication at a base station for communication through a device.