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Spatial modulation (SM) is a recently developed transmission technique that uses multiple antennas. The basic idea is to map a block of information bits to two information carrying units: 1) a symbol that was chosen from a constellation diagram and 2) a unique transmit antenna number that was chosen from a set of transmit antennas. The use of the transmit antenna number as an information-bearing unit increases the overall spectral efficiency by the base-two logarithm of the number of transmit antennas. At the receiver, a maximum receive ratio combining algorithm is used to retrieve the transmitted block of information bits. Here, we apply SM to orthogonal frequency division multiplexing (OFDM) transmission. We develop an analytical approach for symbol error ratio (SER) analysis of the SM algorithm in independent identically distributed (i.i.d.) Rayleigh channels. The analytical and simulation results closely match. The performance and the receiver complexity of the SM-OFDM technique are compared to those of the vertical Bell Labs layered space-time (V-BLAST-OFDM) and Alamouti-OFDM algorithms. V-BLAST uses minimum mean square error (MMSE) detection with ordered successive interference cancellation. The combined effect of spatial correlation, mutual antenna coupling, and Rician fading on both coded and uncoded systems are presented. It is shown that, for the same spectral efficiency, SM results in a reduction of around 90% in receiver complexity as compared to V-BLAST and nearly the same receiver complexity as Alamouti. In addition, we show that SM achieves better performance in all studied channel conditions, as compared with other techniques. It is also shown to efficiently work for any configuration of transmit and receive antennas, even for the case of fewer receive antennas than transmit antennas.