Single user and multiuser MIMO transmission in a cellular network may be performed by selecting by a base station (eNB) to transmit either one or two transmission layers. When one transmission layer is selected, a first transmission layer is precoded with a first precoder. A first demodulation reference signal (DMRS) sequence or a second DMRS sequence is selected by the eNB and precoded using the first precoder. The first transmission layer is transmitted with the selected precoded DMRS from the eNB to a user equipment (UE), and an indicator is transmitted to the UE to indicate which DMRS sequence is selected and transmitted.