A desired signal and interfering signal are transmitted in the same timeslot and on the same frequency using an Adaptive Quadrature Phase Shift Keying (AQPSK) modulated carrier. When the Subchannel Power Imbalance Ratio (SCPIR) for the AQPSK modulated carrier is large and favors the interfering signal, SIC is used to cancel the interfering signal from the received signal. Following interference cancellation, the desired signal is demodulated using two different estimates of the channel and the demodulated soft bits from demodulated soft bits from each demodulation process are combined to obtain a combined estimate.