A mobile device estimates channel state information (CSI) comprising, for example, CQI and/or SNR, for a downlink channel. The estimated CSI is non-uniformly quantized and transmitted to the base station over a finite-rate feedback channel. Different portions of the estimated CSI are quantized using different quantization step sizes, which are determined according to a performance metric function such as a channel capacity function of the estimated CSI. A quantization step size for a portion of the estimated CSI is increased if a low distribution probability is indicated by the portion of the estimated CSI. A quantization step size for a portion of the estimated CSI is decreased if a high distribution probability is indicated. The mobile device quantizes the estimated CSI using the determined quantization step sizes to transmit to the base station over the finite-rate feedback channel. Downlink data transmission is received according to the transmitted CSI.